Paradeep Phosphates (PARADEEP) Q4 18/19 earnings summary

Executive summary

• FY19 total income rose to ₹4,397.21 crore from ₹3,816.69 crore; EBITDA reached ₹480.84 crore, while net profit increased to ₹15,905.16 lakh from ₹15,058.51 lakh.

• Manufactured DAP and NPK production declined to 1,201,470 MT from 1,266,700 MT; traded fertilizer sales increased, led by imported fertilizers and other traded goods.

Financial highlights

• Revenue from operations was ₹435,791.22 lakh versus ₹379,656.55 lakh; other income rose to ₹3,930.11 lakh from ₹2,012.60 lakh.

• Profit before tax was ₹25,148.69 lakh versus ₹22,352.36 lakh; FY19 had no exceptional item, compared with ₹5,386.44 lakh in FY18.

• Net profit was ₹15,905.16 lakh versus ₹15,058.51 lakh; total comprehensive income was ₹15,673.90 lakh versus ₹14,917.17 lakh.

• Raw-material costs were ₹284,763.83 lakh and traded-goods purchases ₹83,910.93 lakh; inventory changes contributed a ₹56,244.92 lakh credit to expenses.

Outlook and guidance

• DAP-D Train revamp was planned for December 2019; overall revamp engineering and procurement progress was 75.48%.

• The 350 TPD fourth evaporator was expected to be completed by December 2019; engineering and procurement were underway.

• Civil construction and HDPE lining were expected to finish in Q1 FY20; one of two cells was already being used to retain excess pond water.

• Engineering discussions considered an additional reactor with a belt filter to raise phosphoric-acid capacity by about 400 TPD; a proposal was awaited.