Krishana Phoschem Limited overall revenue from operations stood at Rs. 40.8 crore in Q1 FY21 versus Rs. 49.3 crore in the corresponding quarter of last year.
The EBITDA margin for the quarter was down to 18.1% as compared to 19.5% in Q1 FY 20. The PAT Margin for the quarter was at 7.05%, mildly lower by 119 basis points as compared to Q1 FY20. PAT for the period stood at Rs. 2.9 crore, down by 29% as against Rs. 4 crore in Q1 FY20.
The company has reported a robust growth in its fertilizer business with sales of Rs. 33.9 crore in Q1 FY21 from its fertilizer segment, which was up by 19.4% as compared to Q1 FY20.
Fertilizers being an essential commodity, the company continued its operations with some intermittent disruptions during the period of lockdown. The demand has been further supported by good Kharif projection by IMD and on time arrival of monsoon in core command areas.
The fertilizer segment reported revenue of Rs. 33.9 crore versus Rs. 28.4 crore in Q1 FY 20, registering a total growth of 19.4%.
The chemical segment reported total revenue of Rs. 6.95 crore as compared to Rs. 20.9 crore in Q1 FY20, registering a decline of 66% on account of fall in demand owing to COVID-19 pandemic.
Krishana Phoschem Limited (KPL), is part of Ostwal Group, and stands at 4th position in terms of manufacturing and sales of SSP Fertilizer in India and accounts for around 8% of total SSP market share in India. Krishana owns 3 manufacturing plants, all strategically located in Meghnagar which lies in the Jhabua district of Madhya Pradesh. The Company is into manufacturing of Single Super Phosphate (SSP), Granulated Single Super Phosphate (GSSP), Boronated SSP, Zincated SSP, Phosphate Rich Organic Manure, Benefited Rock Phosphate (BRP), Sulphuric Acid, H-Acid, Oleum, Liquid SO3, intermediate dyes and other allied chemicals.
The Company has in-house manufacturing facilities of BRP and Sulphuric acid, which are the major raw materials required in production of SSP fertilizer.
Praveen Ostwal, MD, Krishana Phoschem said, “The COVID-19 pandemic has affected all areas of life and has severely impacted the Indian economy, although limited impact has been witnessed by the fertilizer industry. Good rabi harvest and normal monsoon bode well for the Kharif season."
"Recent strategic reforms by the central government to support the agriculture sector are indeed path breaking. This should undoubtedly support the Indian economy in the long term. The company is expecting a good Kharif season and accordingly, enhancing its production efficiencies in anticipation to meet the customer requirement. Going forward, our focus will be on building scale and value in both of our fertilizer and chemical business divisions," added Ostwal.
