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The largest chemical fertilizer manufacturer’s shares soared by up to 14 percent after the business announced a merger with Paradeep Phosphates Limited, whose shares rose by 4% 

With a market capitalization of Rs 1,546.62 crore, the shares of Mangalore Chemicals & Fertilizers Ltd were trading at Rs 130.50 per share, increasing around 8.93 percent as compared to the previous closing price of Rs 119.80 apiece. 

According to the company filing, Mangalore Chemicals & Fertilizers Ltd’s board of directors has approved a composite plan of arrangement for the merging of MCFL and Paradeep Phosphates Ltd, signifying a strategic move of consolidation for both firms. 

In addition to the above paragraph, The proposed merger aims to broaden both companies’ operations and establish a larger entity to foster growth. The planned merger will create one of India’s largest integrated private-sector fertilizer firms, with a total manufacturing capacity of 3.6 MMTPA. 

Furthermore, this move intends to boost customer interaction, improve large-deal skills, leverage both organizations’ production capabilities, capitalize on economies of scale, streamline the supply chain, and therefore offer a more appealing value proposition for all stakeholders. 

The company’s revenue decreased by 45 percent, from Rs 1,173 crore in Q3FY23 to Rs 641 crore in Q3FY24. During the same period, net profit decreased by 56 percent, from Rs 76 crore to Rs 33 crore. 

During the year, the Company produced 3,31,690 MTs against a reassessed capacity of 3,79,500 MTs. This was due to the shutdown of the urea plant for the Energy Improvement Project in the Ammonia Plant. The previous year’s production was 4,29,000 MTs with approval. 

The company sold 3,30,934 MTs of urea this year, compared to 4,31,110 MTs the prior year. Manufactured Phosphatic Fertilizer sales reached 2,53,116 MTs, up from 2,39,959 MTs the year before. Imported fertilizer sales reached 30,180 MTs, up from 26,010 MTs the prior year. 

Mangalore Chemicals and Fertilizers Limited (MCF) principally manufactures, purchases, and sells fertilizers. It is a subsidiary of Zuari Fertilizers and Chemicals Limited, which is part of the Adventz Group. 

Written by:- Abhishek Singh

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