Paradeep Phosphates (PARADEEP) Q4 19/20 earnings summary

Executive summary

• FY20 revenue from operations declined to ₹4,192.86 crore from ₹4,357.91 crore; net profit rose to ₹194.05 crore from ₹159.05 crore, supported by lower tax expense.

• Manufactured fertilizer production and DAP/NPK sales fell YoY, while traded fertilizer and gypsum sales increased; EBITDA reached ₹494.66 crore versus ₹480.84 crore.

Financial highlights

• Revenue from operations was ₹4,192.86 crore versus ₹4,357.91 crore; total income was ₹4,227.78 crore versus ₹4,397.21 crore.

• PBT was ₹230.39 crore versus ₹251.49 crore; net profit was ₹194.05 crore versus ₹159.05 crore.

• Finance costs rose to ₹191.79 crore from ₹159.25 crore; depreciation and amortization increased to ₹72.48 crore from ₹70.10 crore.

• Operating cash flow was ₹1,269.74 crore, versus cash used of ₹920.36 crore in FY19; investing cash outflow was ₹143.16 crore.

Outlook and guidance

• Gypsum Pond II was commissioned; a 350 TPD fourth evaporator was under engineering, with completion expected in Dec 2020.

• A 400 TPD phosphoric acid plant using Prayon technology was under development; basic engineering was complete.

• DAP plant revamp was ~92% complete; D-train revamp was in progress and planned for Aug 2020.

• Management assessed COVID-19 effects on liquidity, debt service and asset recoverability as nil at the reporting date, while stating it would continue monitoring impacts.