Chambal Fertilisers rise 5% despite mixed Q2 results; PAT up 41%, rev slips

Chambal Fertilisers and Chemicals shares gained 5.4 per cent on Thursday and registered an intraday high of Rs 530.85 per share on BSE. The stock advanced despite company posting mixed Q2FY25 results.  Around 11:09 AM, Chambal Fertilisers shares were up 4.92 per cent at Rs 528.5 per share on BSE. In comparison, the BSE Sensex was down 0.99 per cent at 79,584.05. The market capitalisation of the company stood at Rs 21,174.47 crore. The 52-week high of the stock was at Rs 575 per share on BSE and 52-week low of the stock was at Rs 292.05 per share.

 

On Wednesday, after market hours, Chambal Fertilisers reported its Q2 numbers that showed the company registered a consolidated net profit of Rs 536.36 crore as compared to a net profit of Rs 381 crore year-on-year (Y-o-Y), up 41 per cent. 

 

The company's Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 28 per cent to Rs 790 crore as compared to Rs 615 crore a year ago. Similarly, Ebitda margins gained 680 basis points (bps) to 18.2 per cent as compared to 11.4 per cent Y-o-Y. 

 

The company's net profit, Ebitda, and margins grew on the back of better energy efficiency, higher production, and sales of Urea. Additionally, higher volumes and margin in central product classification and soil nitrogen also boosted growth. 

 

However, the company logged a 19 per cent decline in consolidated revenue for the quarter ended September at Rs 4,346 crore as compared to Rs 5,386 crore a year ago.

 

As per the filing, revenue decreased owing to lower volumes of P&K Fertilisers. 

 

Chambal Fertilisers and Chemicals manufacture fertilisers, primarily focusing on the production of urea, which is a key nitrogenous fertilizer. Founded in 1985, the company is headquartered in Kota, Rajasthan, and is part of the DCM Shriram Group, a diversified conglomerate with interests in chemicals, agriculture, and other industries.

 

The company plays a critical role in the Indian agricultural supply chain, as it helps meet the growing demand for fertilizers, especially in a country with a large agrarian economy. Chambal Fertilisers also emphasises sustainability and environmental responsibility, adhering to strict regulatory standards to ensure that its operations minimize environmental impact. 

 

In the past one year, Chambal Fertilisers shares have gained 74 per cent against Sensex's rise of 24 per cent.