Introduction
Chambal Fertilisers and Chemicals Ltd has just unveiled its Q4 FY25 numbers, and they make for an interesting read. The revenue slump is steep, yet net profit is up year-on-year thanks to a one-off JV benefit. For farmers and investors alike, this report highlights the seasonality of fertiliser demand and the importance of strategic partnerships. 🌾📈
Main Points
1. Revenue Performance
- Q4 revenue fell to ₹2,448.73 crore, down 50.2% sequentially and 7.3% year-on-year.
- This decline reflects the usual seasonality in fertiliser demand. Complex Fertilisers and Crop Protection segments were especially hit.
- Imagine a tractor slowing down in off-peak seasons; that is exactly what happened to sales volumes.
2. Profit Before Tax (PBT)
- PBT stood at ₹167.72 crore, plunging 78.6% sequentially but rising 33.3% year-on-year.
- The stark drop QoQ shows that lower sales volumes cannot be entirely offset by cost cutting.
- Yet, on a yearly basis, the company is still moving forward.
3. Net Profit (PAT) and EPS
- Net profit reached ₹130.31 crore, down 75.6% QoQ but up 34.6% YoY.
- EPS was ₹3.25, mirroring the PAT trend with a 75.6% quarterly fall and 29.5% yearly gain.
- The profit surge year-on-year owes much to a JV payout rather than pure operational strength.
4. Joint Venture Impact
- Indo Maroc Phosphore, S.A. contributed ₹131.7 crore in profits.
- Without this one-time inflow, operating profit would have looked significantly weaker.
- It is like getting a surprise bonus cheque; nice to see, but not part of usual salary.
5. Cost and Cash Flow
- Finance cost was zero in Q4 compared to ₹6.94 crore in Q3, providing a small boost to the bottom line.
- Inventory adjustment of –₹1,103.9 crore suggests year-end valuation shifts.
- Final dividend of ₹5 per share (50%) indicates confidence in cash flows.
- Cash equivalents stand at ₹107.75 crore, and net debt has fallen compared to last year.
Conclusion
Chambal Fertilisers saw a classic off-season revenue drop in Q4, yet annual profits shine on the back of JV gains. Investors must watch how underlying operations recover in the coming quarters once the seasonal lull passes. Cash flow remains healthy, but true strength will emerge only when core sales volumes pick up.