Chambal Fertilisers and Chemicals Ltd reports FY2020 PAT of Rs.1224.31 crore

The Board of Directors of Chambal Fertilisers and Chemicals Limited approved on May 23, 2020, the results for the quarter and financial year ended March 31, 2020.

Highlights of Standalone Financial Results: Full year (April 2019 - March 2020)

Annual Revenue at Rs. 12,205.95 Crore up by 20.92% YoY
Annual Net Profit at Rs. 1,224.31 Crore up by 124.53% YoY
Annual EBIDTA (before exceptional items) at Rs. 2081.77 Crore up by 53.71 % YoY

Mr. Anil Kapoor, Managing Director of the Company said: "I am very happy to state that the Company's performance for the Financial Year 2019-20 has been outstanding as compared to the last year and the best ever in the history of the Company. Further, our newly commissioned urea plant achieved the rated capacity during the first full year of operation.

Towards the end of the last quarter, the Company faced the challenge of COVID 19 Pandemic. The Company's first priority has been towards the safety, health and well-being of all its employees. The next priority was to continue operations of all the three Urea plants. Since we took many pro-active steps before and after the lock down to keep all the critical employees within our factory premises, we were able to keep the plants running. We are also happy to report that till date all operations have been normal.

Net Profit for the year was at Rs. 1224.31 Crore up by 124.53% YoY, including one time deferred Tax credit due to promulgation of Taxation Laws (Amendment) Act, 2019. If we exclude the above, Net Profit will be Rs. 880.34 Crore up by 61.45% as against the net profit of Rs. 545.27 in the last year.

During the last year, the Government met the long pending demand of the Urea industry by approving additional fixed cost of Rs 350 per MT of Urea. Although not sufficient enough, the increase does mitigate some of the concerns of the Industry. The effect of the increase has been accounted in the last quarter of the FY 2019-20.

The Company has paid on time, all the obligations pertaining to interest and loan repayments."

OUTLOOK

Farming sector is likely to get a boost this year, with the forecast of good Monsoon. All our urea plants are operating normally during lockdown period. Going forward, we expect production in all our plants to be normal. The highest level of safety protocols and safe distancing norms are being ensured at all our plants. The demand of the products is looking encouraging and we are comfortable on the logistics side also. Since we have kept the work force engaged during lock down period and took proper care of them, we do not foresee any challenge in terms of availability of manpower.

We expect to comfortably meet all our obligations towards interest and term loan repayments for the current year.

The Company is continuously supporting the local communities during these distressing times. The Company also contributed Rs. 5 Crore to PM Cares Fund recognising its responsibility towards the country and the society at large.

Shares of CHAMBAL FERTILISERS & CHEMICALS LTD. was last trading in BSE at Rs.139.05 as compared to the previous close of Rs. 141.5. The total number of shares traded during the day was 70123 in over 2561 trades.

The stock hit an intraday high of Rs. 144.9 and intraday low of 137.45. The net turnover during the day was Rs. 9863276.

Source : Equity Bulls

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