Paradeep Phosphates (PARADEEP) Q4 21/22 earnings summary

Executive summary

• FY22 delivered strong growth in revenue and profit on higher fertilizer volumes; elevated input costs compressed EBITDA margin despite stronger gross profit.

• Goa fertilizer plant acquisition, completed June 1, 2022, expanded the product portfolio and market reach; IPO listing in May 2022 marked the transition to fully private ownership.

Financial highlights

• Consolidated operating revenue rose 52.2% YoY to ₹7,858.72 crore; PAT increased 78.5% to ₹398.45 crore and PBT increased 46% to ₹534.99 crore.

• EBITDA reached ₹710.38 crore, up 26.5% YoY; EBITDA margin fell to 9.0% from 10.9% as raw material costs rose.

• Production increased 22% to 1,247,178 MT; manufactured-product sales rose 10.79%, while traded-product sales declined 47.77%.

• Finance costs declined 23.2% to ₹85.54 crore, supported by repayment of long-term borrowings and lower short-term borrowings.

Outlook and guidance

• Priority is integrating the Goa plant, realizing synergies, improving cost efficiency and productivity, expanding geographic reach, and strengthening brand value.

• Paradeep DAP/NPK granulation capacity was being raised to 1.8 million MT, with completion targeted for October 2022; phosphoric acid capacity was planned to rise from 0.30 million MT to 0.50 million MT by FY23.

• Management expected Paradeep expansion projects to support revenue and shareholder value and anticipated favorable prospects in the coming years.