Chambal Fertilisers gains 4% on healthy Q1FY25 performance; details here

Chambal Fert stock rises: Shares of chemicals and fertiliser company Chambal Fertilisers and Chemicals (Chambal Fert) rose a smooch as 4.05 per cent to hit an intraday high of Rs 511.65 per share on Wednesday, August 7, 2024. 

The rise in the stock price came after the company posted healthy numbers in the June quarter of financial year 2025 (Q1FY25).

The company’s profit rose 32.4 per cent year-on-year (Y-o-Y) to Rs 448.4 crore in the June quarter of FY25, from Rs 338.6 crore in the June quarter of FY24.

Chambal Fert’s revenue, however, dropped 11.7 per cent annually to Rs 4,933.2 crore in the June quarter of financial year 2025, from Rs 5,589.3 crore in the June quarter of financial year 2024. 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda), soared 18.7 per cent Y-o-Y to Rs 752 crore in the June quarter of FY25, from Rs 633.3 crore in the June quarter of FY24.

Consequently, Ebitda margin, or operating profit margin (OPM), expanded 390 basis points (bps) to 15.2 per cent in Q1FY25, from 11.3 per cent in Q1FY24.

Chambal Fertilisers & Chemicals Ltd is involved in the production of urea. In addition to urea, the company markets a variety of other fertilisers and agricultural inputs. It also holds a joint venture in Morocco for the production of phosphoric acid.

The company serves farmers across ten states, being a leading supplier in Rajasthan, Madhya Pradesh, Punjab, and Haryana. The company boasts an extensive marketing network that includes 20 regional offices, 4,200 dealers, and 60,000 retailers.

The company operates three manufacturing plants in Kota, Rajasthan, with a total production capacity of approximately 3.4 million tonnes. These plants achieved a 98 per cent utilisation rate in FY23.

Previously involved in the software sector, the company exited this business in FY21 by selling its assets and transferring associated liabilities.

The market capitalisation of Chambal Fert is Rs 20,301 crore, according to the Bombay Stock Exchange (BSE). 

At 11:13 AM, shares of the company were trading 3.05 per cent higher at 506.70. In comparison, BSE Sensex was up 1.09 per cent at 79,451.39 levels.