Chambal Fertilisers & Chemicals slipped 6.13% to Rs 306.20 after the company posted a 45.8% fall in consolidated net profit to Rs 274.27 crore in Q2 FY23 from Rs 505.92 crore posted in Q2 FY22.
Revenue from operations jumped 91.7% to Rs 8,586.75 crore in Q2 FY23 as against Rs 4,478.61 crore posted in the same quarter last year. Consolidated profit before tax declined 45% year on year to Rs 404.20 crore in the quarter ended 30 September 2022.The company's total expenses for quarter ended September 2022 surged by 116.18% to Rs 8,305.42 crore from Rs 3,841.78 crore recorded in the corresponding period last year. Cost of materials consumer soared 126.85% to Rs 2,563.39 crore and other expenses jumped 101% to Rs 1,780.45 crore in Q2 FY23 over Q2 FY22.
The company stated that it has incurred a one time margin loss of Rs 237 crore on phosphatic and potassic (P&K) fertilisers, during Q2 FY23, due to substantial increase in prices of imported fertilisers and adverse movement in USD‐INR exchange rate, which could not be passed on to the market and unanticipated losses on account of lower subsidy on DAP stock carried forward from the last year.
Meanwhile, the board of directors at its meeting held on Tuesday has approved revision in the capacity and estimated cost of the Technical Ammonium Nitrate (project) at its existing site at Gadepan, District Kota, Rajasthan.
The company revised the capacity of the plant for manufacture of Technical Ammonium Nitrate from approximately 2,20,000 metric tons (MT) per annum to 2,40,000 MT per annum including revision in the capacity of the plant to manufacture weak nitric acid (which is part of the project) from approximately 1,80,000 MT per annum to 2,10,000 MT per annum.
The estimated project cost has been revised from approximately Rs 1,170 crore to Rs 1,645 crore.
The said project is estimated to be completed in next 34 months and implementation of the project is subject to necessary statutory and other approvals.
Additionally, the company's board approved the appointment of Anand Agarwal as chief financial officer of the company with effect from 1 February 2023. Anand Agarwal will be replacing Abhay Baijal, the current chief financial officer of the company. His retirement is due on 31 January 2023.
Chambal Fertilisers & Chemicals manufactures ammonia, urea, pesticides and other products for farming and other agricultural applications. The company also provides consulting services to farmers on their seeding programs.
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