Chambal Fertilisers and Chemicals Ltd., incorporated in the year 1985, is a mid-cap company with market capitalisation of ₹15,368.47 crore functioning in the fertiliser sector, which is its key revenue segment. The company caters to the needs of farmers in 12 states in northern, eastern, central and western regions of India and is the lead fertiliser supplier in the state of Rajasthan. It has a vast marketing network comprising 15 regional offices, 2,200 dealers and 22,000 village level outlets.
The company provides all agricultural products through a single window to enable farmers to buy all products from one source. Its dealers provide urea and other agricultural inputs like DAP (di-ammonium phosphate), MOP (murate of potash), SSP (single super phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the ‘Uttam’ umbrella brand. Chambal Fertilisers and Chemicals has attained a leadership position in the pesticide business in North India.
Financial Overview
The company’s quarterly standalone financials reveal operating profit for Q2FY22 at ₹754.17 crore as compared to operating profit of ₹789.26 crore for Q2FY21. Its net sales for Q2FY22 were ₹4,478.61 crore as compared to net sales of ₹3,986.94 crore in Q2FY21. The net profit has also been on the higher side and stands at ₹425.38 crore in Q2FY22 which was at ₹415.03 crore for Q2FY21. On an annual basis, the net sales have increased from Rs 12,205 crore reported in FY20 to Rs 12,719.01 crore reported in FY21. The operating profit stood at ₹2,500.80 crore as compared to operating profit of ₹2,008.97 crore for FY20. The company has delivered an exceptional net profit of ₹1,658.14 crore for FY21 as compared to net profit of ₹1,222.55 crore for FY20.
This story is from the January 03, 2022 edition of Dalal Street Investment Journal.
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This story is from the January 03, 2022 edition of Dalal Street Investment Journal.
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