Paradeep Phosphates tanks after Q3 PAT decline 30% QoQ to Rs 159 crore

Shares of Paradeep Phosphates tumbled 5.93% to Rs 111.10 due to weak sequential performance.

On a consolidated basis, Paradeep Phosphatess net profit declined 30.25% to Rs 158.75 crore in Q3 FY25 as against Rs 227.63 crore in Q2 FY25. Revenue from operations rose 6.79% to Rs 4,104.92 crore in Q3 FY25 over Q2 FY25. PBT slipped 25.57% to Rs 220.27 crore in Q3 FY25 over Q2 FY25.

On a year-on-year basis, the company's consolidated net profit surged 45.74% while total income advanced 58.13% in Q3 FY25. PBT jumped 43.48% YoY.

Total expense spiked 59.98% to Rs 3,919.86 crore in the December 2024 quarter. The cost of material consumed was at Rs 2,234.33 crore (up 38.69% YoY), while employee benefit expense stood at Rs 60.69 crore (up 8.64% YoY), and finance cost was at Rs 86.43 crore (down 4.81% YoY).

In Q3 FY25, the total fertilizer production amounted to 675,808 MT, with NPK20 production increasing by 6% YoY and other NPK grades rising by 59% YoY.

Total fertilizer sales for the quarter reached 870,586 MT, reflecting a 47% YoY growth.

On a nine-month basis, the companys consolidated net profit zoomed 399.63% to Rs 391.96 crore in 9M FY25, compared with Rs 78.41 crore in 9M FY24. Revenue from operations stood at Rs 10,326.19 crore in 9M FY25, up 10.64% year on year.

S Krishnan, Managing Director, Paradeep Phosphates said, Weve maintained steady performance in production and sales over the past quarters, aided by favorable rainfall, moderate inventory levels, and government support. Our product range has expanded to include over seven grades of NPKs alongside DAP, supported by effective backward integration. Weve also seen a further improvement in our net debt-to-equity ratio this quarter compared to the previous quarter.

Our results are driven by strategic sourcing, backward integration, a soil- and crop-specific product range, and robust sales and distribution networks. Strong relationships with our channel partners and farmers continue to support our growth. The first phase of our energy-saving project at Goa is now concluded, and we expect it to positively impact our bottom line moving forward.

Additionally, our sulfuric acid expansion from 1.39 to 2.00 million MT is on track, supporting our phosphoric acid expansion plans from the current 5 lakh tons to 7 lakh tons. Given the current raw material dynamics, we remain focused on maintaining the right mix of fertilizers and aim to close the fiscal year on a positive note.

Paradeep Phosphates is primarily engaged in the manufacture of urea, di-ammonium phosphate (DAP), complex fertilizers of NPK grades, and zypmite (a gypsum-based product), having its manufacturing facilities at the port town of Paradeep, District Jagatsinghpur, Odisha, and at Zuari Nagar, Goa. The company is also involved in the trading of fertilizers, ammonia, neutralized phospo gypsum, micronutrients, and other materials. The company caters to the demands of farmers all over the country through its Navratna brand of fertilizers.

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