Chambal Fertilisers and Chemicals announced its results for the quarter and financial year ended 31 March 2020.
The chemicals & fertilizers maker reported a 121.73% jump in standalone net profit to Rs 203.70 crore ($26.9 million) in the quarter ended March 2020 as against Rs 91.87 crore ($12.1 million) during the pre-vious quarter ended March 2019.
The company saw a 24.6% decline in net sales to Rs 1969.09 crore ($260.3 million) in Q4 March 2020 as against Rs 2610.85 crore ($345.2 million) in the prior year quarter due to demand slump caused by COVID-19 pandemic lockdown.
Full-Year Results
Net profit jumped 124.53% to Rs 1224.31 crore ($161.9 million) for the full year 2019-20 as against Rs 545.27 crore ($72.1.3 million) in the prior year.
The company’s net sales increased by 20.9% to Rs 12205.95 crore ($1.6 billion) in the year ended March 2020 as against Rs 10094.52 crore ($1.3 billion) in the prior year.
Anil Kapoor, managing director of the company, said, “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 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.
During the last year, the Government met the long pending demand of the Urea industry by approving additional fixed cost of Rs 350 ($4.60) per MT of Urea. Although not sufficient enough, the increase does miti-gate some of the concerns of the Industry. The effect of the increase has been accounted in the last quarter of the FY 2019-20.”
Outlook
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 pandemic period. The company expects production in all of its plants to be normal and demand of the products to continue to rise. The compa-ny believes it is comfortable on the logistics side also.
The company expects to comfortably meet all of its obligations towards interest and term loan repay-ments for the current year.