Chambal Fertilisers jumps 4 per cent on healthy operational performance

A leading manufacturer of urea, Chambal Fertilisers & Chemicals Limited has declared its results for the quarter ended September 30, 2020.

The company’s consolidated revenue for the quarter Q2FY21 came in at Rs 3,986.94 crore as against Rs 3,550.13 crore in the corresponding quarter last year, registering a 12.3 per cent YoY increase.

EBITDA for the quarter grew by 33.4 per cent YoY to Rs 742 crore as against Rs 556.43 crore in the corresponding quarter last year, with a corresponding margin expansion of 294 bps. EBITDA margin for the quarter stood at 18.6 per cent. This margin expansion was supported by a significant decline in the cost of materials consumed to 18 per cent in Q2FY21 as against 30 per cent in Q2FY20.

PAT for the quarter came in at Rs 436.71 crore as against Rs 380.82 crore in the corresponding quarter last year, with a YoY increase of 14.7 per cent.

The performance was primarily driven by a robust increase in the sales of Diammonium phosphate (DAP), Muriate of Potash (MOP), and NPK fertilisers with better margins, apart from the contribution of urea and other agri‐inputs.

For Q2FY21, the company sold 5.04 lakh MT of DAP vs 2.80 lakh MT of DAP during the corresponding quarter of last year, registering a strong growth of 80 per cent. The company also registered 130.90 per cent growth in the sales of MOP, which stood at 1.27 lakh MT vs 0.55 lakh MT during the corresponding quarter of the previous year.

The company continues to grow its non‐urea business by leveraging its extensive dealer and distribution network. The growth was also facilitated by a strong sowing season across the country on the back of widespread and sufficient monsoon.

The board of directors declared an interim dividend of Rs 3 per equity share of Rs 10 each of the company.

Today, the shares of Chambal Fertilisers & Chemicals jumped nearly four per cent to Rs 171.50, supported by healthy Q2 numbers.