Chambal Fertilisers reported its Q2FY25 financial results after market hours on Wednesday, showing mixed outcomes, with an increase in net profit but a decline in revenue. The company's shares rose by 5.4% on Thursday, reaching an intraday high of ₹530.85 on the BSE, reflecting market interest despite the mixed quarterly performance.
This response from investors highlights the stock's potential for those considering share market investment.
Net profit increases by 41% year-on-year
In the second quarter, Chambal Fertilisers' consolidated net profit reached ₹536.36 crore, marking a 41% year-on-year (YoY) increase from ₹381 crore in Q2FY24. The company attributed this growth to several factors, including improved energy efficiency, increased production levels, and stronger sales in its urea segment. For those interested in share market investment, this rise in profit may signal favourable conditions for the company's performance going forward.
EBITDA performance and margin growth
The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 28% YoY, standing at ₹790 crore in Q2FY25 compared to ₹615 crore a year earlier. Chambal Fertilisers' EBITDA margins also increased, expanding by 680 basis points to 18.2% from 11.4% YoY. The higher EBITDA margins highlight the company's improved operational efficiency, which can be a significant factor for share market investment consideration.
Revenue sees a decline despite profit growth
Despite the increase in net profit and EBITDA, Chambal Fertilisers saw a 19% YoY drop in consolidated revenue, which fell to ₹4,346 crore for the quarter from ₹5,386 crore in Q2FY24. This revenue decline contrasts with the profit growth and reflects market dynamics affecting the company's revenue streams. For those interested in share market investment, monitoring this revenue trend is essential, as it may impact future profitability.
Stock market performance and market capitalisation
Following the announcement of the mixed Q2 results, Chambal Fertilisers' stock rose by 5.4% on Thursday. By 11:09 AM, the stock was trading at ₹528.5 on the BSE, representing a 4.92% increase for the day. In comparison, the BSE Sensex was down by 0.99%, indicating that Chambal Fertilisers' stock performance diverged positively from the broader market trend. The company's market capitalisation stood at ₹21,174.47 crore. For those considering share market investment, Chambal Fertilisers' recent stock performance may suggest resilience in its stock despite the mixed financial results.
Stock's 52-week high and low levels
Chambal Fertilisers shares have demonstrated considerable growth over the past year. The stock's 52-week high was at ₹575 per share on the BSE, while its 52-week low stood at ₹292.05. The current trading price indicates the stock is closer to its peak levels, a factor that may be important for those assessing share market investment opportunities in Chambal Fertilisers.
Stock's one-year performance against the Sensex
Over the past year, Chambal Fertilisers' shares have shown a 74% increase, outperforming the BSE Sensex, which rose by 24% during the same period. This growth trajectory highlights the stock's potential as a resilient share market investment, especially for investors seeking stocks that outperform broader market indices.
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