Bharat Agri Fert & Realty Ltd reports turnaround in Fertilizer Division and Pre-Booking Success for Majiwada Project

Bharat Agri Fert & Realty Limited (BHARATAGRD (BSE - 531862) has provided updates on the latest developments of the company's two divisions:

Fertiliser Division:

In Q3 FY24 company reported an exceptional item including one-time loss due to drastic reduction in subsidy rates effective from 1st October, 2023. This reduction applied to unsold inventory of SSP fertiliser as per the IFMS portal and POS mechanism under the NBS policy. The Department of Fertilizer ("DOF") of the Government of India (GOD has increased subsidy on Single Super Phosphate by Rs. 1,263 Pmt. from 1st April 2024, ahead of the Kharif Season.

This will reduce the company's earlier period losses for the December 2023 quarter and improve profitability for the fertilizer unit for FY 2024-25. The closing stock in trade for Q3 FY24 was valued as per the old subsidy rate, but in Q4 FY724, it will be valued as per revised subsidy rates, resulting in the reduction of Q1 FY25 losses and turning the Fertilizer division into profit YoY.

The company has successfully concluded the surrender of credit limit facilities from Bank of Baroda for its "Fertiliser" Division. Term loans and Overdraft A/C have been closed, and the cash credit account, now at zero balance, remains operational solely for Government of India Subsidy receipts, making the Fertilizer division debt-free.

Realty Division:

The total realisations from the Majiwada Project, comprising 457 flats, will be around Rs. 2800 Crs in the next 4 years with a Gross Profit of approximately Rs. 600 Crs.

Even before officially launching the project, firm confirmations for pre-booking of 25 flats has been received. The official launch of this project of 60 storeys in Majiwada, Thane, will be on 9th April 2024, being auspicious occasion of Gudi Padwa.

On the day of launch, bookings of additional 60 to 75 flats is expected. Based on Pre-booking & bookings on launch, 22% of the Project is likely to be booked. These amounts will reflect in Q1 FY25 results on a pro-rata basis.

Commenting on the update, Mr. Yogendra D. Patel - Chairman and Managing Director of Bharat Agri Fert & Realty Limited said, "We are pleased to announce significant developments across both our Fertiliser and Realty divisions. Despite facing challenges in the Fertiliser division, we have navigated through with resilience. The recent increase in subsidy on Single Super Phosphate by the Government of India is a positive step, mitigating earlier losses and positioning us for profitability in the upcoming fiscal year.

Furthermore, we are proud to share the progress of our Realty division with the Majiwada Project. The enthusiastic response from customers, even prior to the official launch, underscores the demand for quality housing in the market. With the official launch scheduled on the auspicious occasion of Gudi Padwa, we anticipate further momentum in bookings, setting the stage for strong revenues and profitability in the quarters ahead.

These developments reflect our commitment to delivering value to our stakeholders while maintaining financial prudence and operational excellence. We remain focused on executing our strategic initiatives and maximizing shareholder returns in the long term."

Source : Equity Bulls

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