India's National Fertilizers posts Q4 profit on lower expenses

Coromandel International

30/05/2024 14:26

BENGALURU, May 30 (Reuters) - India's National Fertilizers  NAFT.NS  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.
    For further highlights, click  urn:newsml:reuters.com:*:nFWN3HX0TD

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  DPFE.NS  and Coromandel International  CORF.NS 
reported quarterly profit declines. Chambal Fertilisers and Chemicals  CHMB.NS , 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         NAFT.NS    NULL      Null      NULL     NULL     NULL       0        Null     2.65
 Fertilizers                                                                                   
 Chambal          CHMB.NS    10.31     6.05      1.19    24.24     Hold       3        0.97     1.85
 Fertilisers                                                                                   
 and Chemicals                                                                                 
 Deepak           DPFE.NS    9.40      6.03      16.50    NULL     Buy        1        0.82     1.83
 Fertilisers                                                                                   
 and                                                                                           
 Petrochemicals                                                                                
 Corp                                                                                          
 Coromandel       CORF.NS    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


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National Fertilizers  March Qtr 2024 vs Peers    https://tmsnrt.rs/3VhCQIq
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Varun H K and Janane Venkatraman)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))