Paradeep Phosphates Navigates Profit Dip with Strategic Expansion

Paradeep Phosphates Ltd reported a 13% drop in Q3 net profit, affected by higher expenses. Despite challenges, the company boosted production and sales volumes and is expanding its capacity. A credit rating upgrade signals strong fundamentals as it pursues growth amid global price volatility.

Paradeep Phosphates Ltd has reported a 13% decline in its consolidated net profit for the third quarter, primarily attributed to rising expenses. The net profit dropped to Rs 182.06 crore in the October-December period, down from Rs 209.34 crore the previous year, as revealed in the company's recent regulatory filing.

The company's total income increased to Rs 5,779.65 crore, up from Rs 5,031.85 crore a year earlier, despite expenses climbing to Rs 5,504.98 crore compared to Rs 4,742.72 crore in the previous period. Production volumes grew by 13% year-on-year, reaching 10 lakh tonnes in the quarter, with sales volumes hitting 10.70 lakh tonnes.

In response to global raw material price volatility and currency fluctuations, Paradeep Phosphates maintained its margins through enhanced supply chain efficiencies and operational agility. Its ongoing strategic expansion includes increasing phosphoric acid capacity at Paradeep and debottlenecking initiatives to elevate granulation capacity, which are supported by an upgraded credit rating to AA-(stable).

(With inputs from agencies.)