Paradeep Phosphates Q2 net profit rises 34% YoY on strong revenue growth

Paradeep Phosphates Ltd on Thursday (November 6) reported a 34% year-on-year rise in consolidated net profit to ₹341.94 crore for the quarter ended September 30, driven by an increase in revenue and stable cost management. The fertiliser maker had posted a net profit of ₹255.33 crore in the same quarter last year.Revenue from operations grew 49% year-on-year to ₹6,872 crore, compared to ₹4,619 crore in the corresponding period last year, aided by higher sales volumes following the merger with Mangalore Chemicals & Fertilizers and improved realisations.

The company’s EBITDA rose 29.4% YoY to ₹656.48 crore, while EBITDA margin declined slightly to 9.55% from 10.98% a year ago, reflecting higher raw material and finance costs.

Profit before tax stood at ₹468.5 crore, up from ₹336.5 crore in the same quarter last year. The company’s board also approved a ₹2,450 crore investment for setting up an integrated granulation plant at its Paradeep site and a ₹1,150 crore phosphoric and sulphuric acid plant at Mangalore to strengthen backward integration and reduce import dependence.During the quarter, the company also announced key board additions, including the appointment of Akshay Poddar as Vice Chairman and Ruchira Kamboj, India’s former Permanent Representative to the UN, as an Independent Director.

The shares of the company ended 1.6% in the red on Thursday. The stock has gained 42% in the year so far.

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