Highlights of full year financial results (April 2019 - March 2020)
- Annual revenue at Rs. 12 205.95 crore, up by 20.92% y/y.
- Annual net profit at Rs. 1224.31 crore, up by 124.53% y/y.
- Annual EBIDTA (before exceptional items) at Rs. 2081.77 crore, up by 53.71 % y/y.
Anil Kapoor, Managing Director of the company, said: “I am very happy to state that the company’s performance for the financial year 2019-20 has been outstanding as compared to the last year and the best ever in the history of the company. Further, our newly commissioned urea plant achieved the rated capacity during the first full year of operation.
Towards the end of the last quarter, the company faced the challenge of Covid 19 pandemic. The company’s first priority has been towards the safety, health and well-being of all its employees. The next priority was to continue operations of all the three urea plants. Since we took many pro-active steps before and after the lock down to keep all the critical employees within our factory premises, we were able to keep the plants running. We are also happy to report that till date all operations have been normal.
Net profit for the year was at Rs. 1224.31 crore up by 124.53% y/y, including one time deferred tax credit due to promulgation of Taxation Laws (Amendment) Act, 2019. If we exclude the above, net profit will be Rs. 880.34 crore up by 61.45% as against the net profit of Rs. 545.27 in the last year.
During the last year, the government met the long pending demand of the urea industry by approving additional fixed cost of Rs 350/t of urea. Although not sufficient enough, the increase does mitigate some of the concerns of the industry. The effect of the increase has been accounted in the last quarter of the FY 2019-20.
The company has paid on time, all the obligations pertaining to interest and loan repayments.”
The company believes the farming sector is likely to get a boost this year, with the forecast of a good monsoon. All urea plants are operating normally during the lockdown period. Going forward, the company expects production in all of its plants to be normal. The highest level of safety protocols and safe distancing norms are being ensured at all plants. The demand of the products is looking encouraging and the company believes it is comfortable on the logistics side also.
The company expects to comfortably meet all of its obligations towards interest and term loan repayments for the current year.
Read the article online at: https://www.worldfertilizer.com/nitrogen/26052020/chambal-fertilisers-and-chemicals-reports-increased-profit-for-fy2019-20/