Paradeep Phosphates Q3 Profit Declines 13%

New Delhi, Feb 2 (PTI) Paradeep Phosphates Ltd reported a 13 per cent decline in consolidated net profit for the third quarter on Monday, as higher expenses weighed on the fertiliser maker's bottom line.

Net profit fell to Rs 182.06 crore in the October-December quarter from Rs 209.34 crore a year earlier, the company said in a regulatory filing.

Total income rose to Rs 5,779.65 crore from Rs 5,031.85 crore in the year-ago period, while expenses climbed to Rs 5,504.98 crore from Rs 4,742.72 crore.

Production volumes grew 13 per cent year-on-year to 10 lakh tonnes in the quarter, while sales volumes reached 10.70 lakh tonnes.


The company maintained margins through supply chain efficiencies and operational agility despite global volatility in raw material pricing and rupee fluctuations, it said.

Paradeep Phosphates is expanding its phosphoric acid capacity at its Paradeep plant from 0.5 million tonnes per annum to 0.7 million tonnes in the first phase, which will enable backward integration across all sites.

The company is also exploring debottlenecking opportunities at Paradeep to raise granulation capacity from 1.8 million tonnes to 2 million tonnes per annum.

Credit rating agency upgraded the company's long-term rating to AA-(stable), reflecting strong fundamentals that will help optimise capital costs for expansion projects, Managing Director N Suresh Krishnan said.

Paradeep Phosphates is one of India's largest phosphatic fertiliser companies, with an annual capacity of 3.7 million tonnes across Paradeep (Odisha), Goa, and Mangalore.