Paradeep Phosphates (PARADEEP) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw robust production and sales growth, with production up 25% and sales up 47% year-on-year; nine-month production rose 4% and sales 13% year-on-year.

• Total income for Q3 FY25 was ₹41,049 million, up 58% year-on-year, and ₹103,262 million for 9M FY25, up 11% year-on-year.

• Focus remains on value-added NPK fertilizers, with seven unique NPK grades and DAP produced to meet diverse farmer needs; strong traction for new products like Triple Super Phosphate and biogenic nano-fertilizers, with nano-fertilizer sales surpassing 1.4 million bottles in nine months.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 income from operations was INR 4,105 crore, up 58% year-on-year; EBITDA reached INR 372 crore with a 9% margin.

• Q3 PAT was INR 159 crore, up 47% year-on-year, with a PAT margin of 4%; nine-month PAT was INR 392 crore (3.8% margin).

• Basic EPS for Q3: ₹1.95, up 45.5% YoY; nine-month EPS: ₹4.81.

• Gross debt stood at INR 4,000 crore, with net debt at INR 2,600 crore after cash adjustment.

• Received INR 1,750 crore in subsidy for the quarter, with INR 1,700 crore pending.

Outlook and guidance

• Expecting to deliver a positive FY 2025, with continued focus on optimizing fertilizer mix, managing raw material price fluctuations, and operational excellence.

• Full benefit of backward integration projects, especially sulfuric acid expansion, expected in the second half of FY 2026.

• Sales volume for FY 2025 projected to approach 2.9–3 million tons, with similar or higher levels expected in FY 2026 as integration benefits materialize.

• Board approved a composite scheme of arrangement for the merger of Mangalore Chemicals & Fertilizers Limited with the company; accounting effect to be given upon receipt of approvals.