Paradeep Phosphates (PARADEEP) Q4 22/23 earnings summary

Executive summary

• FY23 combined the Goa acquisition and 150% capacity expansion to 3 MMTPA with record output and sales; revenue rose sharply, but PBT, PAT and key returns declined.

• Production reached 2.032 million tonnes and sales 2.029 million tonnes; capacity utilisation was 84%, with market share near 8%.

Financial highlights

• Consolidated revenue from operations rose 69.76% to ₹13,340.72 crore; EBITDA was ₹892.1 crore, up 26% YoY.

• Consolidated PBT fell 20.34% to ₹426.17 crore and PAT fell 23.66% to ₹304.19 crore; standalone EPS declined to ₹3.89 from ₹6.91.

• Raw-material costs increased 98.99% to ₹10,439.70 crore; finance costs rose to ₹291.24 crore from ₹85.54 crore, while other income included ₹64.08 crore of excess provisions and unclaimed balances written back.

• Operating cash flow was negative ₹2,376.67 crore, mainly reflecting a ₹2,423.75 crore increase in trade receivables; cash and cash equivalents ended at ₹43.03 crore.

Outlook and guidance

• FY24 margins were expected to improve with lower input costs, higher captive phosphoric acid capacity of 0.5 MMTPA and the fourth evaporator; projects were targeted for Q1 FY24 completion.

• Plans include increasing sulphuric acid capacity by 0.5 MMTPA over two years and expanding markets, product offerings and farmer engagement; a 1,500 TPD sulphuric acid plant with 23 MW power capacity was targeted for completion by 2025.

• New NPK formulations and nano-fertiliser development were in progress; agri-service digitisation and distribution-channel technology were also strategic priorities.