- Q1 FY24 brought challenges for the fertilizer industry, including uneven rainfall and demand-supply imbalances.
- Despite challenges, the company achieved a 126% YoY growth in production volumes and an 81% YoY growth in sales volumes.
- The company reported a quarterly income of Rs. 30,735 million, showing a 25.7% YoY growth.
- EBITDA for the quarter was Rs. (-194) million, and the profit after tax was INR (-1,199) million, impacted by retrospective subsidy adjustments.
- The net one-time adjustment was Rs. 305 crores, which, without it, EBITDA would be Rs. 285 crores.
- Total fertilizer production during the quarter was 6,40,784 metric tons, a 126% YoY growth.
- Sales volume during the quarter was 6,21,824 metric tons, an 81% YoY growth.
- The company improved farmer and distribution connections, reaching 61.5% more farmers in Q1 FY24 compared to the previous year.
- The expansion of captive Phosphoric acid capacity to 5,00,000 metric tons at Paradeep plant is now complete and under commissioning.
- The industry outlook seems positive due to factors like monsoon revival, robust reservoir levels, and stable global commodity prices.
- The company remains cautiously optimistic about macroeconomic challenges.
- The company aims to maximize value for stakeholders with fully stable and fungible capacity.
- Subsidy receivable at quarter-end was Rs. 3,203 crores.
- Phosphoric acid plant is commissioned, and sulfuric acid plant and efficiency improvement projects in Goa remain for CAPEX.
- The company aims to reduce debt to moderate levels while stabilizing operations.
- The long-term borrowing is Rs. 968 crores, and working capital debt fluctuates between Rs. 1,000 crore and Rs. 2,000 crore.
- The company aims to achieve a steady-state EBITDA commensurate with industry norms.
- Phosphoric acid prices and raw material prices allow cost recovery, ensuring profitability.
- The company has not evaluated opportunities such as acquiring stakes in other companies like Mangalore Chemicals.
- Zuari Agro Chemicals had an independent agreement with OCP for sourcing Phosphoric acid, separate from the Paradeep plant's arrangements.
|- Despite challenges, the company achieved significant growth in production and sales volumes.
- Zuari Agro Chemicals faced challenges in Q1 FY24 due to uneven rainfall and demand-supply imbalances.
|- Despite challenges, the company achieved significant growth in production and sales volumes.
- The company reported a quarterly income of Rs. 30,735 million, with a 25.7% YoY growth.
- EBITDA for the quarter was Rs. (-194) million, impacted by retrospective subsidy adjustments.
- Profit after tax was INR (-1,199) million, with a net one-time adjustment of Rs. 305 crores.
- Total fertilizer production during the quarter was 6,40,784 metric tons, a 126% YoY growth.
- Sales volume during the quarter was 6,21,824 metric tons, an 81% YoY growth.
- The company improved farmer and distribution connections, reaching 61.5% more farmers.
- Expansion of captive Phosphoric acid capacity at Paradeep plant is complete.
- The industry outlook seems positive with monsoon revival and stable global commodity prices.
- The company remains cautiously optimistic about macroeconomic challenges.
- Subsidy receivable at quarter-end was Rs. 3,203 crores.
- The company aims to reduce debt to moderate levels while stabilizing operations.
- Long-term borrowing is Rs. 968 crores, and working capital debt fluctuates.
- The company aims to achieve a steady-state EBITDA commensurate with industry norms.
- Phosphoric acid prices and raw material prices allow cost recovery, ensuring profitability.
- The company hasn't evaluated opportunities like acquiring stakes in other companies.
- Goa and Paradeep plants are independent entities, not having common management.
- Goa plant's energy efficiency is being improved, aiming to achieve government norms.
- Channel inventory strategy is in place to optimize stock levels based on market conditions.