Chambal Fertilizers & Chemicals Limited

Gaurav Mathur

Managing Director, Mr. Abhay Baijal, CFO,

rs,

tating the numbers in my opening remarks. The proactive procurement of DAP and other P&K fertilisers, and hence, the good inventories, which we had at the beginning of the quarter, enabled us to regis

Rs. 5,500

rter. Okay. Fine, sir. And regards the subsidies levels that has gone up, sequentially let's say Rs. 5,500 odd crores. Can you give a sense, the split between the subsidy debtors that has gone up because of

Rs. 3,400 crore

sk Anuj to give you the details on that. Anuj? Anuj Jain: Surya Patra: You see, urea is about Rs. 3,400 crores and P&K fertilisers is about Rs. 1,300 crores, so total is about Rs. 5,485 crores. So, urea is, i

Rs. 1,300 crore

Anuj Jain: Surya Patra: You see, urea is about Rs. 3,400 crores and P&K fertilisers is about Rs. 1,300 crores, so total is about Rs. 5,485 crores. So, urea is, it includes escalation. It is majorly on accoun

Rs. 5,485 crore

e, urea is about Rs. 3,400 crores and P&K fertilisers is about Rs. 1,300 crores, so total is about Rs. 5,485 crores. So, urea is, it includes escalation. It is majorly on account of escalation which should get cle

90%

cause turnover has gone up due to sharp increase in prices. That is the major reason. I would say 90% of the reason is accounted for from that. Of course, yes, traded product margins have undergone de

Rs. 7,200 Crore

major ratios that you are seeing in terms of the decline. That is because the turnover has gone to Rs. 7,200 Crores, profits and EBITDA remain more or less the same. Yes. So that is clearly visible, sir, but I j

1.05 Lakh

bility? So if you can give some colour to that? See, the DAP volume rise is of the order of about 1.05 Lakh metric tons and the margins have shrunk to that extent that we are still, you can understand that

64%

presentation, I think that would give you a sense. We have seen as mentioned in the presentation, 64% growth in our top line. So, you can well understand that not only the seed-to-harvest initiative,

10%

tions. Thank you. Gaurav Mathur: Yes, very good question. So, while there was this news about a 10% cut, however, we have not seen any disruption. Our plants continue to operate at full capacity. A

20 million

proposed by the government. They seem to have very big plans for it. Talking about replacing maybe 20 million tons of urea that’s sold correctly in the country in coming years. So, I mean, how do you see thi

Rs. 2,50,000 Crore

in the context of, you know, the heavy subsidy burden on the Government? People are talking about Rs. 2,50,000 Crores. So, I mean, do you, expect the flow of subsidies from the government to remain smooth, sir, acro

“As we move forward, we see the prices of phosphatic fertilisers have retreated from their peak levels, and we are hopeful of softening trend in the market going forward.”

“The thrust has been on improving our penetration and reach across our target markets through channel expansion, farmer demand generations, and widening of the product portfolio.”

“This demand generation program, that is the seed-to-harvest program, will be continued through Rabi as well as widened in its geographical scope.”

“We remain confident of our prospects going forward.”

“The Ammonium Nitrate project is progressing as per plan, commercial discussions are ongoing with international vendors of repute and the statutory approval process is on track.”

“So, with this sharp correction in the Sulphur prices and the indications that ammonia is also likely to see a kind of similar, so given that, any clarity or colour that you can provide for let's say next quarter, sir, because here volume is also expected to be really stronger in the subsequent quarter.”

“So Surya, as I mentioned in my opening remarks, you know, we see a softening trend in the prices going forward from international suppliers and like you mentioned, Sulphur has gone down substantially, Ammonia, while it has gone down, it is steady and we have to see how it progresses going forward.”

“But overall, like I said, we expect a softening on international prices going forward.”

“So, we expect similar things to replicate and in the territories identified so far.”

“The industry also will be in a better position to understand this.”

Gaurav Mathur

39

Surya Patra

16

Abhay Baijal

5

Vidit Shah

5

Moderator

4

Falguni Dutta

3

Vivek Ramakrishnan

2

Abhijit Akella

2

Himanshu Binani

2

Ashish Srivastava

1

Gaurav Mathur

Q1 FY23 Earnings Conference Call August 04, 2022 Ladies and gentlemen, good morning and welcome to the Q1 FY’23 earnings conference call of Chambal Fertilisers and Chemicals Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*”, then “0” on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishab Barar from CDR India. Thank you, and over to you, sir. Thank you. Good day, everyone. Thank you for joining us on the Chambal Fertilisers and Chemicals Q1 FY’23 Earnings Call. We have with us today Mr. Gaurav Mathur - Managing Director, Mr. Abhay Baijal, CFO, Mr. Rajveer Singh, Vice President-Legal and Company Secretary, Mr. Ashish Srivastava, Vice President - Sales & Marketing, Mr. Anand Agarwal, Vice President- Finance