Energy efficiency initiatives will drive margin expansion this year, says Chambal Fertilisers CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Abhay Baijal, Managing Director of Chambal Fertilisers and Chemicals, expects the recently completed energy efficiency projects to drive margin expansion in April-March 2024-25.

Chambal has spent almost ₹185 crore on the energy efficiency projects.  

The company will also recover the urea volumes lost during the January-March period due to plant maintenance shutdowns, he said.

Given the healthy cash flows, Baijal is confident that the company will be debt-free by the end of FY25. Currently, the company has debt of around ₹1,400 crore. 

In the March quarter, the company has managed to increase its profits due to a reduction in expenses compared.

The revenue from operations dipped 27% from last year. However, a sharper decrease in expenses helped profit grow by 3% year.

The company announced a dividend of ₹3 per share.

Also Read | Centre allows urea imports by state-owned fertiliser companies until March 2025

The agrochemicals manufacturing firm headquartered in Kota possesses a market capitalisation of approximately ₹16,052.13 crore.

Over the last year, its shares have surged by nearly 33%.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow