Fertilizer stock engaged in manufacturing, trading, distribution, and sales of a variety of complex fertilizers and many others jumped up to 12 percent in the day’s trade upon declaring robust Q2FY25 results with a 4,132 percent jump in Net Profits.
Price Action
With a market capitalization of Rs. 7,728 Crores, the shares of Paradeep Phosphates Limited were trading at Rs. 94.98 per equity share, up 7 percent from its previous day’s close price of Rs. 88.71.
Q2FY25 Results
Its Revenue from operations grew by 4.36 percent YoY from Rs. 3,683.02 Crores in Q2FY24 to Rs. 3843.84 Crores in Q2FY25 and it grew by 62 percent QoQ from Rs. 2,377.43 Crores in Q1FY25 to Rs. 3,843.84 Crores in Q2FY25.
Its Net Profit grew by 155 percent YoY from Rs. 89.43 Crores in Q2FY24 to Rs. 227.63 Crores in Q2FY25 and it grew by 4132 percent QoQ from Rs. 5.38 Crores in Q1FY25 to Rs. 227.63 Crores in Q2FY25. Its Net Profit Margin increased from 2.42 percent in Q2FY24 to 5.89 percent in Q2FY25.
Q2 Updates
Total production volumes stood at 693,311 MT, reflecting a 5 percent YoY increase and the Total sales volumes of finished fertilizers reached 865,286 MT, marking an 18 percent year-over-year increase
The Board of Directors approved the brownfield expansion of captive phosphoric acid capacity from 0.5 MMTPA to 0.7 MMTPA with an investment of Rs. 250 Crores. This initiative aims to achieve 100 percent backward integration in fertilizer production, reduce import dependency, and enhance the company’s operational capabilities and profitability.
Management Message
Commenting on the Q2 results, Mr. S Krishnan, Managing Director & CEO, Paradeep Phosphates said,
“In Q2 FY25, we benefited from favorable conditions, including good monsoons, healthy reservoir levels, and robust crop prices. We achieved strong volume growth across our diverse portfolio of NPK fertilizers, further reinforced by the acceptance of our climate and soil-friendly products like nano-fertilizers and TSP.
Our strategic approach to raw material sourcing and diligent operational management improved our financial leverage, resulting in a 25 percent reduction in our net debt-to-equity ratio.
The board has also approved plans to increase our phosphoric acid capacity targeting 100 percent backward integration across all manufacturing sites. These initiatives will enhance our earnings quality and position us for sustainable growth.
Looking ahead, I am optimistic about the upcoming Rabi season, which we anticipate will mirror the strong demand seen in Kharif. With our robust supply chain linkages and backward integration capabilities, along with our diverse product offerings and strong channel partnerships, we are well-equipped to serve Indian farmers and soils effectively.
We will continue to prioritize our ESG initiatives as a core aspect of our growth strategy. I want to extend my heartfelt gratitude to all stakeholders for their ongoing support in our journey.”
About the Company
Paradeep Phosphates Limited is engaged in manufacturing, trading, distribution, and sales of a variety of complex fertilizers such as Diammonium Phosphate, several grades of nitrogen, phosphorus, and potassium, Zypmite and by-product, Phospho- gypsum, and Sulphuric Acid, Ammonia, and Phosphoric acid.
Paradeep Phosphates Limited is a leading company in India’s phosphatic fertilizer industry, with a total production capacity of 3 million metric tonnes, caters to over 9 million farmers through 70,000 retail points across 15 Indian states and supplies industrial products such as gypsum, HFSA, sulphuric acid, ammonia, and many more.
Written by: Bharath K.S
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