Chambal Fertilizers extends recent gains after robust Q2 earnings

Chambal Fertilizers & Chemicals advances 1.04% to Rs 170 after consolidated net profit surged 110.32% to Rs 380.82 crore on 42.18% increase in net sales to Rs 3,566.14 crore in Q2 September 2019 over Q2 September 2018.

The result was announced during market hours on Friday, 8 November 2019. Shares of Chambal Fertilizers & Chemicals have risen 3.78% in three trading sessions to its current market price of Rs 170, from a recent closing low of Rs 163.80 on 6 November 2019.

The company has carry forward tax losses and Minimum Alternate Tax (MAT) credit as on date and it is expected that the company will remain under MAT for some more years. In view of the above, the Company has carried out an assessment according to which it shall continue under the existing tax regime and move to lower tax rate in later years. Accordingly, the company has re-assessed the deferred tax liability as per Ind AS 12 'Income Taxes' and resultant impact is being recognised over the current and remaining quarters of the current year. Hence, 'deferred tax' for the current quarter and six months ended 30 September 2019 includes a credit of Rs 124.49 crore.

EBITDA grew 110.84% to Rs 601.52 crore in Q2 September 2019 as against Rs 285.29 crore in Q2 September 2018, aided by robust operating performance. The firm commenced commercial production from its new ammonia urea plant (Gadepan-III Plant) with effect from 1 January 2019.

Chambal Fertilisers and Chemicals offers urea and di-ammonium phosphate (DAP). The company's segments include fertilisers and other agri-inputs segment, own manufactured phosphoric acid segment, shipping segment and software and others segment.

Powered by Capital Market - Live News