BENGALURU (Reuters) – India’s National Fertilizers reported a fourth-quarter profit on Thursday on lower expenses.
The state-run agricultural chemicals maker reported a consolidated profit of 2.08 billion Indian rupees ($25 million) for the quarter ended March 31, compared to a loss of 2.36 billion rupees a year ago.
Revenue fell 15.9% to 52.84 billion rupees from 62.57 billion rupees, marking fourth straight quarterly revenue decline.
However, total expenses fell 25.1% to 50.68 billion rupees.
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KEY CONTEXT
Indian fertilizer companies have been grappling with high levels of domestic inventory for past few quarters as well as weak demand. The higher-than-average temperatures in the reporting quarter, along with water shortages in parts of the country, also added to the challenge.
However, analysts expect a change of fortunes in the sector as Asia’s third-biggest economy is expected to receive above-average monsoon rains this year.
Peers Deepak Fertilisers and Petrochemicals and Coromandel International reported quarterly profit declines. Chambal Fertilisers and Chemicals, however, posted a profit rise despite fall in revenue due to lower expenses.
PEER COMPARISON
Valuation(next 12 Estimates (next Analysts’ sentiment
months) 12 months)
RIC PE EV/EBITDA Revenue Profit Mean No of Stock to Div
growth( growth rating* analysts price yield
%) (%) target** (%)
National NULL Null NULL NULL NULL 0 Null 2.65
Fertilizers
Chambal 10.31 6.05 1.19 24.24 Hold 3 0.97 1.85
Fertilisers
and Chemicals
Deepak 9.40 6.03 16.50 NULL Buy 1 0.82 1.83
Fertilisers
and
Petrochemicals
Corp
Coromandel 19.60 12.62 6.70 14.92 Buy 9 1.01 0.46
International
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.2731 rupees
(Reporting by Ashish Chandra in Bengaluru; Editing by Varun H K and Janane Venkatraman)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.