After reporting a decline in net profit by 80.3 percent QoQ, the share price of this small-cap PSU stock and one of India’s leading private sector players in phosphatic fertilisers moved down by 3.8 percent on BSE to hit an intraday low at Rs. 69 in the trading session of Thursday.
With a market capitalisation of Rs. 5,650.22 crore, at 11:43 a.m., the shares of Paradeep Phosphates Limited were trading in the red at Rs. 70.12, down by 2.31 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Wednesday post-market hours.
The consolidated net profit of Paradeep Phosphates stood at Rs. 21.5 crore in Q4 FY23-24, rising by 115 percent YoY from Rs. 10 crore in Q4 FY22-23, but declining by 80.3 percent QoQ from Rs. 109 crore in Q3 FY23-24.
The revenue from operations, however, saw a dip for the company. It fell by 38.4 percent YoY from Rs. 3,644 crore in Q4 FY22-23 to Rs. 2,242.74 crore in Q4 FY23-24, as well as by 13.6 percent QoQ from Rs. 2,595 crore in Q3 FY23-24 to Rs. 2,242.74 crore in Q4 FY23-24. The decline in product subsidies is the cause of these reductions.
For Q4 FY23-24, Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA, grew by 11 percent YoY to Rs. 178 crores, while for the full year of FY23-24, stood at Rs. 717 crore.
Production volumes in FY23-24 were 2,304,969 MT, up by 13 percent year-on-year, while the sales volumes were 2,527,119 MT, jumping by 25 percent YoY.
The company is also in the process of introducing innovative grades of soil and crop-specific NPK fertilisers and launching its own researched biogenic nano-urea and nano-DAP fertilisers, which will significantly improve soil nutrition.
Further, the company’s Board has recommended a dividend of Rs. 0.50 per equity share of Rs. 10 each fully paid up, subject to approval of shareholders.
Paradeep Phosphates Limited (PPL) is one of India’s largest private-sector phosphatic fertiliser companies, producing a wide range of phosphatic grades and is a key supplier of fertilisers to the Indian states including Maharashtra, Karnataka, Odisha, and West Bengal.
The company is also a major supplier of various industrial products such as gypsum, zypmite, hydrofluorosilicic acid (HFSA), sulphuric acid, and ammonia and its products are marketed under the brand names “Jai Kisaan” and “Navratna”.
PPL is currently promoted by Zuari Maroc Phosphates Pvt Ltd, a 50:50 joint venture between Zuari Agrochemicals and the OCP Group of Morocco.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
