Quarterly profit rises 34% after merger restatement
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On the reaction day the stock moved 5.1 pts more than Nifty Smallcap 250 and 4.8 pts more than its Fertilizers peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Quarterly revenue rose 48.8% to Rs 6,872.20 crore and profit rose 33.9% to Rs 341.94 crore. Six-month revenue was Rs 11,375.70 crore and profit Rs 659.19 crore, while cash from operations fell to Rs 161.58 crore from Rs 1,431.49 crore. Comparative figures were restated from 1 April 2024 after the Mangalore Chemicals and Fertilizers merger. The auditor raised no exception. The board approved Rs 3,600 crore of expansion projects.
Profit growth is positive, but a lower operating profit margin, weaker cash flow and Rs 3,600 crore of expansion raise funding and execution risks.