Chambal Fertilisers Reports 16% Surge in Q1 Net Profit, Revenue Jumps 16%
Chambal Fertilisers & Chemicals reported strong Q1 results with net profit rising 16% to Rs 6.40 billion and revenue increasing 16% to Rs 57.00 billion year-over-year. EBITDA slightly increased to Rs 7.61 billion, while EBITDA margin decreased to 13.36% from 15.24% in the previous year. The company's performance indicates robust growth in the fertiliser sector, despite some pressure on margins.
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Chambal Fertilisers & Chemicals , a leading player in the Indian fertiliser industry, has reported a robust performance for the first quarter. The company's financial results showcase significant growth in both revenue and profitability.
Financial Highlights
| Metric | Value | Change |
|---|---|---|
| Net Profit | Rs 6.40 billion | up 16% year-over-year |
| Revenue | Rs 57.00 billion | increased 16% from the previous year |
| EBITDA | Rs 7.61 billion | a slight increase from Rs 7.52 billion |
| EBITDA Margin | 13.36% | down from 15.24% in the previous year |
Revenue Growth
Chambal Fertilisers witnessed a substantial 16% increase in revenue, reaching Rs 57.00 billion compared to Rs 49.00 billion in the same quarter last year. This growth reflects the company's strong market position and effective sales strategies in the fertiliser sector.
Profit Performance
The company's net profit for Q1 stood at Rs 6.40 billion, marking a significant 16% rise from Rs 5.50 billion reported in the corresponding period of the previous year. This impressive growth in profitability underscores Chambal Fertilisers' operational efficiency and cost management efforts.
EBITDA and Margin
While the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a marginal increase to Rs 7.61 billion from Rs 7.52 billion, the EBITDA margin experienced a slight contraction. The EBITDA margin for Q1 stood at 13.36%, compared to 15.24% in the same quarter of the previous year. This reduction in margin percentage, despite higher absolute EBITDA, suggests increased operational costs or pricing pressures in the market.
Market Implications
The strong financial performance of Chambal Fertilisers in Q1 indicates a positive outlook for the company and potentially for the broader fertiliser industry. The substantial growth in revenue and profitability may be attributed to factors such as increased demand for fertilisers, favorable government policies, or improved operational efficiencies.
Conclusion
Chambal Fertilisers & Chemicals has kicked off the quarter on a strong note, with double-digit growth in both revenue and net profit. While the company has managed to increase its EBITDA, the slight decline in EBITDA margin warrants attention to cost management strategies going forward. As the agricultural sector continues to be a crucial component of the Indian economy, Chambal Fertilisers' performance may be indicative of broader trends in the fertiliser industry.
Historical Stock Returns for Chambal Fertilisers & Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.20% | +5.01% | +2.06% | +4.41% | +7.56% | +258.70% |
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