Comments
Paradeep Phosphates Ltd (PPL) registered nearly 71 per cent drop in its net profit at ₹51 crore for the quarter ended September 30, 2022, as compared with ₹175 crore for the same period last year.
Revenue from operations during the quarter under review grew by nearly 48 per cent at ₹2,864 crore as against ₹1,935 crore during the same period last year.
The company’s EBITDA stood at ₹188 crore in Q2 FY23 and the adjusted EBITDA for the quarter is ₹230 crore. The EBITDA is adjusted for a one-time exceptional cost of ₹42 crore related to the acquisition of the Goa plant in June 2022, the company said in a statement. The company completed the Goa plant acquisition and allied business of Zuari Agro Chemicals Limited (ZACL) on a slump sale basis.
According to S Krishnan, Managing Director, Paradeep Phosphates, the company had commenced operations at Goa plant and all the three trains are fully operational. Further, the completion of the revamp process of the fourth granulation train at the Paradeep plant is in advanced stages.
“Regarding the product mix, our choice to manufacture a higher amount of N-20 and lower DAP this quarter reflects the flexibility of our production trains to adapt as per market demand. However, certain one-time expenses and a delay in commissioning the NPK trains at the Goa plant resulted in higher fixed costs and a consequential impact on EBITDA. Going forward, we believe robust demand experienced in kharif season will continue into rabi and the industry will benefit from low inventory levels, high reservoir levels and an overall decline in some raw material prices,” Krishnan said.
Production up
The total fertilisers produced grew by 37 per cent at 5,06,195 mt compared with 3,68,340 mt in Q2FY22. The company saw a record output of 216,937 mt of N-20 in Q2FY23 compared with 151,870 mt in Q2FY22.
The company launched three new NPK grades improving farmers’ choice in their quest for soil-specific and crop-specific applications.
Raw material costs increased during the quarter owing to steep global commodity prices. However, it said, certain raw materials prices have softened in October.
The finance cost also increased due to rise in subsidies outstanding and currency volatility when compared to previous year. It added that the fertiliser demand is expected to remain firm during rabi season, given the low stocks and high reservoir levels.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.