Chambal Fertilisers and Chemicals (CHAMBLFERT) Q1 24/25 earnings summary

Executive summary

• Standalone EBITDA rose 31% year-over-year to INR 942 crore, with PAT up 18% to INR 552 crore; consolidated PAT increased 32% to INR 448 crore year-over-year.

• Achieved strong growth in Crop Protection Chemicals and Speciality Nutrients, with 40% year-over-year contribution growth and 80% revenue growth in new territories.

• Launched 8 new crop protection chemical products (6 herbicides, 2 fungicides) and introduced Uttam Pranaam Bio Nano Phosphorus, a biogenic phosphorus product.

• Technical Ammonium Nitrate project progressing as planned, with INR 342 crore spent and all major orders placed.

• Prepaid all long-term loans, resulting in zero long-term debt and a net cash surplus.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was INR 4,933 crore, down 12% year-over-year; EBITDA up 31% to INR 942 crore.

• Standalone PAT increased 18% to INR 552 crore; consolidated PAT up 32% to INR 448 crore.

• EPS rose to INR 13.78, up from INR 11.28 year-over-year.

• Received INR 2,300 crore in subsidy during the quarter, including INR 92 crore as additional subsidy for complex fertilisers.

• Net cash surplus increased from INR 260 crore to INR 583 crore as of June 30, 2024.

Outlook and guidance

• Expect exponential growth in new biological products and specialty nutrients as farmer adoption increases.

• Focus on expanding product pipeline, especially in biologicals and high-value crops.

• Crop protection and specialty nutrients segment expected to maintain growth, though margin volatility between 18%-23% is anticipated.

• No specific guidance on complex fertilizer margins due to dynamic government policy and international price factors.

• Financial results are based on notified concession prices and government policies for urea and other fertilisers, with adjustments for input price changes.