Paradeep Phosphates Q2 results: Net profit up over 76% at Rs 89.43 cr

Paradeep Phosphates Ltd (PPL) on Wednesday clocked a 76.25 per cent jump in net profit at Rs 89.43 crore for the second quarter of the 2023-24 fiscal, on robust income.

The company's net profit stood at Rs 50.74 crore in the same quarter previous fiscal year, according to a regulatory filing.

The total income increased to Rs 3,683.02 crore during the July-September quarter of the current financial year, from Rs 2,863.69 crore in the year-ago period.

The company's overall expenses remained higher at Rs 3,573.64 crore, as against Rs 2,801.81 crore in the said period.

According to PPL, fertiliser production rose 25 per cent to 6,51,883 tonnes during the Q2 of this fiscal, from the year-ago period. Fertiliser sales jumped by 78 per cent to 8,07,399 tonnes in the said period.

PPL Managing Director S Krishnan said despite less than adequate rainfall, the company achieved good Q2 primary and secondary sales numbers.

"With normalization of raw material prices and a concomitant decrease in subsidy rates announced in October 2023, we will increasingly see a true balance towards market realizations vis a vis subsidy realizations. This is expected to augur well for the sector," he said.

The company said its newly expanded captive phosphoric acid plant at Paradeep site from 3 lakh to 5 lakh tonnes annual capacity - is now running at optimal capacity.

"We are focused on achieving maximum value for the upcoming Rabi season utilizing our competitive, operational, geographic and backward integration advantages," Krishnan added.

The Bhubaneswar-based company produces wide range of phosphatic grade fertilisers and urea.

Last year, PPL completed the Rs 1500 crore IPO and used part of the proceeds to complete the acquisition of 1.2 million tonnes capacity fertiliser plant at Goa.

PPL currently has a total production capacity of 3 million tonnes of fertilisers, of which 0.4 million tonnes was urea and the balance 2.6 million tonnes was phosphates. It has two manufacturing facilities - one at Paradeep in Odisha and another at Zuarinagar, Goa.