Chambal Fertilizers & Chemicals Ltd
Fertilizers
FV – Rs 10; 52wks H/L –72.75/50.85; TTQ – 20 K; CMP – Rs 67.50 (As On June 28 2016; 12:30) ;                              

   Market Cap – Rs 2809.15 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Equity Capital	Net worth	Long Term Debt	Total Sales	PAT	BV (Rs)	EPS (Rs)	P/E	Industry P/E	P/BV	Promoter’s Stake	Beta
416.21	2371	708	10527	216.09	57	5.19	13.01	18.42	1.2	57.13	0.59

 

Standalone Financials and Valuations for Q4 FY16

Equity Capital	Net worth	Total Sales	PAT	BV (Rs)	TTM EPS (Rs)	TTM P/E	Industry P/E	P/BV	Promoter’s Stake	Beta
416.21	2371	1595	-29.44	57	-0.71	–	18.42	1.2	57.13	0.59

 

Valuation Parameters:

1. Long Term Debt to Equity – 0.3
2. ROE % – 9.11
3. Market Cap/Sales – 0.27

Chambal Fertilisers to raise Rs. 1,058 cr from SBI, Axis bank

http://www.thehindubusinessline.com/companies/chambal-fertilisers-to-raise-rs-1058-cr-from-sbi-axis-bank/article8318213.ece

 

Chambal Fertilisers to sell entire shipping business

http://articles.economictimes.indiatimes.com/2015-12-22/news/69237507_1_chambal-fertilisers-fertilisers-chemicals-vessels

 

The Company has entered into an agreement for sale of vessel – Ratna Puja in March, 2016. The ship has been delivered to the buyer in April, 2016. This has resulted into provisioning of loss of Rs.111.99 crore in March, 2016 accounts. The major portion of the loss is attributable to the foreign exchange losses capitalised as part of the cost.

 

Key Updates:

• The Fertilisers and other Agri-inputs business of the Company contributes 87% of the total revenue, whereas Shipping and Textile contributes the remaining.
• The Company had to shutdown Gadepan – II plant from February 8, 2015 due to un-favourable policy of the Government of India for production beyond 100% capacity which resulted into lower production of Urea.
• During the last quarter, the Board of Directors of the Company approved the sale of its textile business to Sutlej Textile & Industries Ltd, as a going concern on slump sale basis.
• Chambal Fertilisers has consolidated its position in agri-business and diversified into other sectors. Its shipping division under the name India Steamship operates 5 Aframax tankers with a combined capacity of over 5,00,000 DWT.
• In addition, Chambal Fertilisers has other business interests through its subsidiary in the software sector. It also has a joint venture in Morocco for manufacturing phosphoric acid.- The Company has entered into an agreement for sale of vessel – Ratna Puja in March, 2016. The ship has been delivered to the buyer in April, 2016. This has resulted into provisioning of loss of Rs.111.99 crore in March, 2016 accounts. The major portion of the loss is attributable to the foreign exchange losses capitalised as part of the cost.

 

Overview:

• Chambal Fertilisers and Chemicals Ltd is one of the largest private sector fertilizer producers in India.
• Its two hi-tech nitrogenous fertiliser (urea) plants are located at Gadepan in Kota district of Rajasthan. The two plants produce about 2 million MT of Urea per annum.
• Chambal Fertilisers caters to the need of the farmers in twelve states in northern, eastern, central and western regions of India and is the lead fertiliser supplier in the State of Rajasthan. The Company has a vast marketing network comprising 15 regional offices, 2,000 dealers and 20,000 village level outlets.
• The Company has donned the mantle of providing all agri-products through a ‘single window’ to enable the farmer to buy all products from one source.
• The Company dealers provide Urea and other agri-inputs like DAP (Di-Ammonium Phosphate), MOP (Murate of Potash), SSP (Single Super Phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the ‘Uttam’ umbrella brand. Today, the Company has attained a leadership position in the pesticide business in North India.

 

Particulars	2014-15	2013-14	% Inc/Dec
Urea Production (MT in lac)	18.52	19.41	-5
Urea Sales (MT in lac)	18.85	20.96	-10
SSP Production (MT in lac)	1.38	1.03	34
SSP Sales (MT in lac)	1.65	0.64	158

 

• To promote sustainable farming practices, Chambal has a well-structured farmer advisory programme known as ‘Uttam Bandhan’.
• To encourage the new age farmer, a website, ‘uttamkrishi.com’, provides information on the weather, suitable cropping techniques and markets in Hindi language.
• ‘Hello Uttam’ toll-free telephonic helplines have been set up to answer the queries raised by farmers. Unemployed youth from villages are enrolled as ‘Uttam Krishi Salhakars’. They are trained in the latest farming techniques and provide specialised services to farmers.

Sales Of various Products
Products	2014-15	2013-14	% Inc/Dec
Di- Ammonium Phosphate	6.39	6.04	6
Muriate of Potash	1.99	0.42	374
SSP	0.22	0.54	-59
Other fertilizers	0.42	0.6	-30
Pesticides – (Rs. Crs)	302.94	249.67	21
Seeds – (Rs.Crs)	64.97	51.56	26

 

Management:

• Mr. S. K. Poddar – Chairman
• Mr. Anil Kapoor  – MD

The Equity Capital is @ Rs 416.21 consisting of 416207852 equity Shares of FV Rs 10 currently held 

8.91% Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No	Non – Promoters	No. of shares held	% of shares held
1	Reliance Capital Trustee Co Ltd A/C	6702381	1.61
2	DSP Blackrock Micro Cap Fund	6599566	1.59
3	Life Insurance Corporation of India	26589034	6.39

 

The Debt of the company comprises of :

DEBT (Rs. Crs)
Particulars	31-03-2016	31-03-2015
Long term loan – Fertiliser / Textile	33.13	146.12
Long term loan – Urea expansion G3 project	212.63	_
Long term loan – Shipping	795.58	925.07
Working Capital	3775.16	2879.13
Total	4816.5	3950.32

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars	FY16	FY15	FY14	FY13	FY12	FY11
Equity Paid Up	416.21	413.95	413.95	416.21	416.21	416.21
Networth	2371	2251	2056	1852	1701	1576
Total Debt	4629	3800	4456	5004	3474	2415
Net Sales	10527	9843	9016	8283	7618	5773
Other Income	44	105	105	81	80	87
PAT	216.09	294.61	244.12	238.52	158.31	240.59
Book Value (Rs)	57	54	50	44	41	38
EPS (Rs)	5.19	7.12	5.90	5.73	3.80	5.78