Chambal Fertilisers & Chemicals slipped 4.79% to Rs 432.15 after the company posted a 7.56% fall in consolidated net profit to Rs 435.17 crore in Q3 FY22 from Rs 470.75 crore posted in Q3 FY21.
Revenue from operations increased by 22.4% to Rs 4,743.33 crore in Q3 FY22 from Rs 3,872.6 crore posted in the same quarter last year. Consolidated profit before tax stood at Rs 610.58 in Q3 FY22, 10.5% lower than Rs 682.2 crore registered in Q3 FY22.The company's total expenses for quarter ended December 2021 spiked by 32.4% to Rs 4260.89 crore from Rs 3,217.7 crore recorded in the corresponding period last year.
The board of directors at its meeting held today also approved setting up a plant for manufacture of Technical Ammonium Nitrate at its existing site at Gadepan, District Kota, Rajasthan with a capacity of approximately 2,20,000 metric tons per annum. The estimated cost of project is approximately Rs 1170 crore.
The project will also include a plant to manufacture approximately 1,80,000 metric tons per annum of weak nitric acid. Chambal said that the demand of Technical Ammonium Nitrate in India outstrips the supply and balance is met through imports. The company has excess ammonia being produced in its fertiliser plants at Gadepan due to technical reasons which is presently being sold in the domestic market. Such excess ammonia is proposed to be utilized for manufacture of Technical Ammonium Nitrate which will result into value addition and hence better margins for the company. The Technical Ammonium Nitrate to be manufactured shall cater primarily to the domestic market in India.
The said project is estimated to be completed in next 36 months and implementation of the project is subject to necessary statutory and other approvals.
Meanwhile, the company has declared a dividend of Rs 4.5 per share. The interim dividend shall be paid/ dispatched on or before 25 February 2022.
Chambal Fertilisers & Chemicals manufactures ammonia, urea, pesticides and other products for farming and other agricultural applications. The company also provides consulting services to farmers on their seeding programs.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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