National Fertilizers Ltd., a state-owned fertilizer and chemicals manufacturer based in India announced its results for the first quarter ended June 30, 2020.
Q1 Results- QoQ
The company’s net profit grew 144% to Rs 108.31 crores ($14.7 million) for the period ended June 30, 2020 as against net loss of Rs 248.65 crores ($33.7 million) for the previous quarter.
Net sales dropped 7% to Rs 2837.9 crores ($385 million) during the period ended June 30, 2020 as com-pared to Rs 3040.06 crores ($412.4 million) during the previous quarter.
Q1 Results- YoY
The company’s net profit increased 269% to Rs 108.31 crores ($14.7 million) for the period ended June 30, 2020 as against net loss of Rs 64.07 crores ($8.7 million) for the prior-year quarter.
Net sales grew 9% to Rs 2837.9 crores ($385 million) during the period ended June 30, 2020 as compared to Rs 2609.82 crores ($354 million) during the prior-year quarter.
On the impact of the pandemic on its business, National Fertilizers Ltd in its stock exchange filings said, “During the quarter ended 30th June 2020, the Company’s production, dispatches, sales and market collections largely remained unaffected. The Company has been able to operate all its five plants at normal levels except for restriction in load for few days due to limitation of supply of bags.”
“Delay in execution of Energy Saving Schemes at all units and commissioning of Joint Venture Project (RFCL ) due to stoppage of project activities at site because of shortage of labour and delay in the visit of foreign experts for commissioning of these projects due to travel restrictions arising from COVID-19 has led to time & cost overrun impacting the financial performance of the Company,” the company stated.
The company has recorded a total fertilizer sale of 2.38 Million MT in April-August, 2020 showing a growth of 16% compared to previous best of 2.06 Million MT recorded during the same period in 2019-20.
On the production front too, the company has surpassed the production target by producing 1.6 Million MT Urea in the first five months of 2020-21, higher by 13% as compared to 1.43 Million MT produced during the same period in 2019-20.