Chambal Fertilisers and Chemicals (CHAMBLFERT) Q2 24/25 earnings summary

Executive summary

• Achieved strong growth in Crop Protection Chemicals and Speciality Nutrients, with 36% y-o-y contribution growth and 214% revenue growth in new territories.

• Urea manufacturing units operated at optimal capacity, with ~3% energy efficiency improvement and a 125 MT/day production increase y-o-y.

• Technical Ammonium Nitrate project progressing as planned, with 37% completion and Rs 388 Cr spent by September 2024.

• Unaudited standalone and consolidated financial results released for the quarter and six months ended September 30, 2024.

• Interim dividend of Rs. 5 per equity share declared, payable by December 5, 2024.

Financial highlights

• Standalone Q2 EBITDA: INR 834 crores (up 20% YoY); PAT: INR 500 crores (up 34% YoY); revenue: Rs. 4,346.18 crore.

• H1 EBITDA: INR 1,776 crores (up 30% YoY); PAT: INR 1,053 crores (up 35% YoY); revenue: Rs. 9,279.41 crore.

• Consolidated Q2 PAT: INR 536 crores (up 41% YoY); H1 PAT: INR 965 crores (up 37% YoY).

• CPCSM Q2 revenue: INR 289 crores (up 18% YoY); contribution: INR 83 crores (up 36% YoY).

• Standalone EBITDA margin for Q2 FY25 estimated at 17.3% (EBITDA: Rs. 749.65 crore, Revenue: Rs. 4,346.18 crore).

Outlook and guidance

• Focus on sustainable technologies, precision farming, and expansion into hybrid seeds; sales and marketing of new seed products expected from Q25.

• Technical Ammonium Nitrate (TAN) project on track, with completion targeted by October 2025.

• Launching 2-3 new biological products in the next financial year, especially for fungicides and nematicides.

• Interim dividend signals confidence in ongoing cash generation and profitability.