Chambal Fertilisers and Chemicals (CHAMBLFERT) Q1 24/25 earnings summary

Executive summary

• Standalone EBITDA rose 31% YoY to INR 942 crore; PAT up 18% to INR 552 crore; consolidated PAT up 32% to INR 448 crore; Board approved Q1 FY25 results on August 6, 2024.

• Crop protection chemicals and specialty nutrients business delivered strong growth, with 40% YoY contribution growth and 8 new CPC products launched.

• Urea production reached 923,000 metric tons for the quarter, with all units operating at optimal capacity and improved energy efficiency.

• Technical Ammonium Nitrate project progressing as planned, with INR 342 crore spent and all major orders placed.

• Achieved zero long-term debt after prepaying all long-term loans, resulting in a net cash surplus.

Financial highlights

• Standalone revenue for Q1 FY25 was INR 4,933 crore, down 12% YoY; standalone EBITDA up 31% to INR 942 crore; standalone PAT up 18% to INR 552 crore; consolidated PAT up 32% to INR 448 crore.

• Crop protection and specialty nutrients segment saw 39-40% growth in contribution profit, driven by advanced placement and product selection.

• Traded complex fertilizer margins increased sharply, aided by a prior period income of INR 92 crore.

• Net cash surplus increased from INR 260 crore to INR 583 crore as of June 30, 2024.

• Basic and diluted EPS (standalone) for Q1 FY25 was INR 13.78, up from INR 11.28 YoY.

Outlook and guidance

• Management expects exponential growth in new biological products and the Uttam Pranaam Bio Nano Phosphorus product as farmer adoption increases.

• Crop protection and specialty nutrients business is expected to maintain growth momentum, though margin volatility between 18-23% is anticipated.

• No specific guidance for complex fertilizer margins due to dynamic government policy and international price factors.

• Financial results are based on notified concession prices and government policies for urea and other fertilisers.

• Focus on expanding product pipeline, especially in biologicals and high-value crops.