Paradeep Phosphates (PARADEEP) Q4 20/21 earnings summary

Executive summary

• FY2020-21 total income was ₹5,183.94 crore vs ₹4,227.78 crore; EBITDA rose to ₹561.46 crore from ₹494.66 crore, and PBT to ₹366.70 crore from ₹230.39 crore.

• Growth plans centered on a proposed Goa fertilizer-plant acquisition for US$280 million enterprise value, subject to approvals, alongside capacity and efficiency projects.

Financial highlights

• Revenue from operations was ₹5,164.73 crore vs ₹4,192.86 crore; other income declined to ₹19.21 crore from ₹34.91 crore.

• Standalone PAT rose to ₹223.46 crore from ₹194.05 crore; total comprehensive income was ₹224.31 crore vs ₹190.64 crore.

• Finance costs declined to ₹111.43 crore from ₹191.79 crore; depreciation and amortization increased to ₹83.33 crore from ₹72.48 crore.

• Total expenses increased to ₹4,817.24 crore from ₹3,997.39 crore, including traded-goods purchases of ₹1,380.20 crore vs ₹475.41 crore.

• Operating cash flow was ₹1,501.15 crore vs ₹1,269.74 crore; investing outflow was ₹289.32 crore and financing outflow ₹1,124.38 crore.

Outlook and guidance

• A 400 TPD phosphoric acid plant using Prayon technology was in engineering and construction phases; management said it would reduce P₂O₅ imports.

• The 4th evaporator project, with 350 TPD capacity, was expected to reach mechanical completion in July 2021.

• A DAP plant train restarted after revamp in November 2020; the second train was expected to restart in May 2021.