Chambal Fertilizers & Chemicals Limited (NSE: CHAMBLFERT) Q4 2025 Earnings Call dated May. 09, 2025
Corporate Participants:
Rishab Barar — Senior Consultant
Abhay Baijal — Managing Director
Anuj Jain — Chief Financial Officer
Ashish Srivastava — Vice President of Sales and Marketing
Analysts:
Jignesh Kamani — Analyst
Vedant Sarda — Analyst
Harmish Desai — Analyst
S. Ramesh — Analyst
Tarang Agrawal — Analyst
CA Ashok Jain — Individual Investor
Deekshant Boolchandani — Analyst
Sophiya Masta — Analyst
Sandeep Mukherjee — Analyst
Chandra Gupta — Individual Investor
Manish Mahawar — Analyst
Presentation:
Operator
Please wait while you’re joined to the conference. The conference is now being recorded Ladies and gentlemen, good day and welcome to the Chambal Fertilisers and Chemicals Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing and view on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Rishab Barar from CDR India. Thank you, and over to you, sir.
Rishab Barar — Senior Consultant
Thank you. Good day, everyone, and thank you for joining us on the Fertilizers and Chemicals Q4 and FY ’25 earnings call. We have with us today Mr Abhay Baijal, Managing Director; Mr Anuj Jain, CFO; Mr Tridib Barat, Vice-President, Legal and Company Secretary; and Mr Ashish Srivastava, Vice-President, Sales and Marketing. Before we get started, I would like to point out that some statements made or discussed in the conference call today may be forward-looking in nature and must be viewed in conjunction with the risks the company faces. Fertilizers and Chemicals does not undertake to update them. The statement in this regard is available for reference in the presentation. We will begin this call with opening remarks from Mr Baijal. I would now like to invite Mr Bajal to share his views. Over to you, sir.
Abhay Baijal — Managing Director
Thank you. Thank you very much. Wish good day-to everybody and a warm welcome to all of you participating in this call. To quickly recap our numbers for the quarter under review, on a standalone basis, revenues amounted to INR2,449 crores. The company achieved a profit-after-tax of INR100 crores as against INR86 crores, which is a growth of about 16%. For the full-year, the company achieved an EBITDA of INR2,838 crores against INR2,428 crores, which is a growth of about 17% and a PAT of INR1,657 crores as against INR1,331 crores, translating into a growth of 24%. Two of our plants underwent shutdowns, Gadepan-III for about 36 days and there was a main shutdown of 14 days in Gadepan-I due to a problem in one or two dollars. Despite this, the company has performed well. We have achieved higher production as compared to the corresponding quarter. For the full-year also, urea production volumes continued to be strong at 34.61 lakh metric tons compared to 33.83 lakh metric tons last year. Urea sales for the year amounted at 34.71 lakh metric tons, against 32.56 lakh metric tons in the previous year. We have run both Gadepan-I and II efficiently. The advantages accruing out-of-the energy-saving schemes we continuously monitor the efficiency and plan to implement further energy efficiency projects to reduce it forward. Subsidiary receipts continue to be timely. As of March 31, 2025, our subsidy outstanding was INR265 crores and we are glad to inform you that a large proportion of this amount has been received on-time. We continue to see volume and sales growth in our CPC SM business. In-quarter four FY ’25, CPC SM revenues stood at INR39 crores as against INR15 crores last year. Contribution at INR15 crore was higher by about INR7 crores. This took a total contribution for the business to INR247 crores against INR175 crores and our revenues to INR926 crores against INR760 crores. We have achieved a compounded CATR of 25% in CPCSM business and we hope to carry this momentum forward as well.
During the year, we introduced 12 new CPC products primarily comprising of sites. Today, our CPC product portfolio comprises of 64 products of distinct chemistries covering fungicides, and insecticides, which have been well-accepted by farmers across India in our territory. We are also working on 18 new products, which shall be introduced in Karif and Rabi. Our strategy continues to focus on creating partnerships and alliances for introducing better chemistries and increasing the bit of offerings in our channel. During FY ’25, we also achieved a 8% revenue from biologicals of the total CTC level. We will continue to strengthen our biological portfolio, fungicide and will be introduced in 25 and 25, respectively to address farmers’ pain point for and disease control, for which internal field tests have been successful. Is now focusing increasingly on technologies with doing benefits in terms of improving far yields, improved soil health and provide better product outcomes.
During the year fertilizers and Energy and Resources Institute entered into an agreement for research for advanced and sustainable agricultural commissions. There is a significant in the backdrop of food security challenges due to an increasing population. We are delighted by the launch — successful launch of, phosphorus liquid fertilizer, an advanced solution designed to enhance phosphorus availability and crops., as you know, is a pioneer institution in the area and we’ll be doing research under the Center of Excellence to develop new products where IP rights are jointly owned between CFCL and and will have exclusive commercial rights globally on the products developed over the next five years. We will be introducing hybrid and research variety seeds in 25, which will substantially complete the early input products profile. In the space, our product portfolio approach continues. We have sourced adequate volumes of NPK fertilizers, ensuring preparedness for current-season. We are in active discussions with global suppliers to ensure the smooth supply of PLP fertilizers across the year.
Our Pharma Connect seat to harvest program is now growing. The seat to harvest program is playing a significant role towards strengthening and expanding our relationships with both the farmer and our channel partners. During the year, conducted over 9,000 meetings, 11,825 demos and connected 105 lakh soil samples. The program is being scaled-up with digital intervention in newer locations of 25. Our technical ammonia nitrate is progressing in-line with timelines. Statutory approvals are in-place. And till-date we have strength about INR650 crores. Our joint-venture in the has also performed well with higher production and better margins. The as we know is increasing its phosphoric acid capacity from about 5 lakh metric tons to 7 lakh metric tons and this should be available in timeframe of 2027. With that, we are now happy to take your questions. Thank you so much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press start and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may test start and two. All participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jignesh Kamani from Nippon AMC. Please go-ahead.
Jignesh Kamani
Hello. Hi, team. Just want to understand on the DAP import. So last year because of the lower subsidiary, import was not viable, you can say. So how is it based on the current sort of how is the scenario on DAP import? And if partly used to do, you can say close to around 8 to 10 kind of RDIP trading. What kind of possibility you can go back to that level you can say in one to two years because of a better study?
Abhay Baijal
Yeah. If I get you right, I think what asking is what our stance on imports is likely to be for and. So I would say that the government has made suitable adjustments and have gone to a kind of cost-plus mode. We are also participating. Almost lakh and 30,000 tonnes has been contracted to date, which includes volumes of TSP as well. And going-forward, I think should this policy continue, we have no hesitation in increasing volumes in this area. Subject, of course to various geopolitical uncertainties and the effects of the case are that we are in a little uncertain situation today. But nevertheless, we feel that we will be able to surpass our volumes last year.
Jignesh Kamani
And it will impede NPK volume because industry has witnessed very healthy growth in the NPK, partly because of the lower of DAP. Now if availability
Abhay Baijal
Not really. There are grades. These are very special to certain costs where there doesn’t make much difference, especially high. There are other grades which are direct substitutes of BAP. Yes, to that point, there will be a difference. There are grades which have sulfur, which are on a category of their own. They are price-competitive, they are priced competitively as compared to sell. You know what I’m meaning 2020, 13 grades that I’m trying to mention here. So there are various shades in this whole game and one has to play the gaps and supply gaps and availability in order to make money here.
Jignesh Kamani
And last one, how are you going to generate inventory considering that because of plant shutdown, consumer volume has been down by close to around 5% on our level. So have we reduced the channel inventory and have scenario?
Abhay Baijal
No, I think we carry more or less the same inventory as last year. See, what it really means is that we would have done better shutdown of 14 days. Inadverted not happen. But that is part and parcel of the game of running these high-tech plants, sometimes things do happen. But we are back on-stream and don’t blast from April 1st. So that’s what I would like to respond on the questions
Jignesh Kamani
Thanks a lot. All the best. Thank you.
Operator
The next question is from the line of Vedant Sarda from Nirmal Bang Securities. Please go ahead.
Vedant Sarda
Hello. Yes, sir. Am I audible?
Operator
Yes, sir.
Vedant Sarda
Yes. My question is like we are operating at a 99% of the urea capacity. So what would be our growth drivers for next two to three years? Any capacity expansion plans in urea segment or when will probably the technical ammonium nitrate project would be in operations?
Abhay Baijal
Obviously, there is always a chance to improve our capacities through various projects, which we continuously be. There is a pipeline of such energy efficiency projects, which also knock-on benefits in terms of volume increases because sometimes these projects technically also give margins in machines. And as you know from previous year to this year, we have actually increased almost 1 lakh tonnes per annum, which is 34 lakh tons kind of average, we are going to 35 lakh ton kind of average. You can increase further. That is one part. As far as technical ammonia nitrate is concerned, as you know, our commercial operation or production rate is somewhere in January ’26. So that should kick-in terms of revenues by the third or 4th-quarter of this year. As far as other products and projects are concerned, I think I had made a mention last-time that we are looking at various other options which are not at liberty to disclose and those are making steady progress as we speak.
Vedant Sarda
Okay.
Operator
So does that answer your question, Mr. Vedant? No response from the current participant, we will move on to the next participant. The next question is from the line of Harmish Desai from PhillipCapital. Please go ahead.
Harmish Desai
Good morning and thanks for taking my question. Is my voice audible?
Abhay Baijal
Yes, I should say.
Harmish Desai
Yeah. Thank you. Sir, in FY ’25, apart from the TAM capex, what is our total capex apart from TAN?
Abhay Baijal
I think it is of the order of about INR300 odd crores.
Harmish Desai
Okay. And sir, what is the total capex that we can expect in FY ’26.
Abhay Baijal
That is what I was telling. See, we have almost the total capex at ’25 crow fully off the order of INR1,200 crores.
Harmish Desai
Got it, sir. Got it. And sir, so we are commissioning our TAN plant in January 2026. So in FY ’27, how much — how fast and to what capacity can be able to ramp-up this new capex — a new TAN plant?
Abhay Baijal
We all hope for the rest. Why would you not — we would expect it to go to at least 80%, 90%. But as far as our financial planning is concerned, we are more conservative.
Harmish Desai
Got it. Got it, sir. Sir, can you help me with the urea volume numbers in one, two and 3 for Q4.
Abhay Baijal
So Mr Jain can answer that question.
Anuj Jain
Yeah, we have for Gadepan-I, we have 2.4 lakh ton. 2, we have 2.57 lakh tons and 3, 2.11 lakh tonne, 11 lakh ton.
Harmish Desai
Got it. That is helpful, sir. And sir, what is the gas price for 4th-quarter?
Abhay Baijal
The gas price for quarter 4th-quarter is around $15 LCD at LC basis.
Harmish Desai
Got it. And sir, lastly, how much ammonia have we sold-in 4th-quarter or in FY ’25 as a whole?
Abhay Baijal
I think we sold about 1.03 lakh tonnes.
Harmish Desai
This is four-quarter, this is FY ’25, right?
Abhay Baijal
FY ’25.
Harmish Desai
Yeah, got it, got it. That is all from my side. Thank you.
Operator
Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Institutional Equities. Please go ahead.
S. Ramesh
Thank you and good morning. So if you look at your performance in protection, what is the driver for the improved margins? And can you share us what is the EBITDA margin you have given in the gross margin? So what will be the EBITDA margin percentage terms? And what will drive this 23% between FY ’25 and FY ’27? Will it be predominantly the new product, how do you see that?
Abhay Baijal
See, I think we have over the years established efficient sales and sales mechanism, which continues to give us so-far the margin. Our alliances also help with that our direct discussions with various companies who are providing us either the technical or the know-how or then we are getting it from made from various formulators and all that. So that is one part as far as the margin is concerned. The second part on margin is the freshness of the products, the how many new products that we introduce, whether it is in, herbicides, fungicides and so on. So there is a strategy working out there in terms of how we place and procure these materials. So-far in the last three years are any indication, these have been steady and we are hoping to also repeat this performance in FY ’26. So this continues to work for us. And I think in the last-time when we had this discussion, we have made the point that being the bridge between the farmer’s pain point and a solution which we actively pursue and do a lot of research on, I think is the secret sauce that looking for.
S. Ramesh
So if you look at the 4th-quarter, in terms of this Crop protection revenue growth, how much of that will be volume growth? But companies are talking about some pricing pressure. So what is in your case, how much is it driven by volume growth?
Abhay Baijal
It is mostly driven by volume growth and there are some fast catch-ups also in this. And Mr Ashish can answer this question more from me.
Ashish Srivastava
Yeah, usually those — the question is right, the whatever crops crop chemicals in-quarter four, basically sugar came okay. So this is basically volume growth and not much of price issues in that.
S. Ramesh
Okay. So if you look at your fertilizer trading portfolio, you have seen healthy growth in NPK and DAP. So do you continue — do you expect to continue this trend? What is the kind of growth you would expect in the trading portfolio we have been NPK next year?
Abhay Baijal
See there about 5.5 lakh tons plus or minus in the whole year FY ’25, primarily split between MOP, DAP, THP and NPKs. My guesswork is that this year we will have a much larger portfolio of NPK, possibly doubling it or going to 150% on that. NOP could be the same or slightly subdued. And DAP will grow, as I mentioned to the first participant. But given the government’s policy, we have no education in stepping in and we’re doing our part plus the fact that our channel would expect that kind of support from that. So I would add a, but I think we are well-covered in terms of. And almost this amount that we did last year we will do in.
S. Ramesh
Okay. So just going back to Crop protection, what is the on-ground replacement demand you’re seeing for Karis given the summer crop acreage has shown healthy growth, how do you see that?
Abhay Baijal
So the — whatever forecast if you’re looking at or whether it’s IMD or time at we are expecting a normal monsoon again. And whatever inventory pressures were there in the competition of past years, those have also gone out. So we expect a robust growth in the CPCU segment overall.
S. Ramesh
Thank you very much and I shall join the queue. Thank you.
Operator
Thank you. The next question is from the line of Tarang Agrawal from Old Bridge Capital Management. Please go ahead.
Tarang Agrawal
Good morning, sir. Good morning team and congratulations on an extremely strong performance, especially in the Crop protection business. I have a couple of questions pertaining to Crop protection. One, sir, you spoke about 64 products being active in the portfolio today. These are 64 SKUs or these are 64 unique products. And second, I mean, just to get a better handle, how would — I mean, if you could give us a sense on quantitative intensity in your portfolio? I mean, are there alternates available or for a large part of your portfolio not available? I just wanted to get a sense on, you know, how unique the portfolio is? That’s one. Second, you know, to further to the earlier participant, how confident are you to be able to maintain the financial metrics of the trading business apart from growth, I mean everything else going-forward in FY ’26.
Abhay Baijal
I’ll take the second question first. As far as the financial metrics for trading are concerned, we are pretty confident that having strategically and practically in the first-quarter, we are sitting at the competitive price levels, I would say, which creates the necessary margin for us. That is number-one. And going-forward, of course, the market is shifting. It has tightened in terms of prices. As we said that we are more or less stocked for Karif. Going-forward, we’ll have to see how this plays out in the international market there are geopolitical issues but there could be entrants such as China into the market once again that would soften up the general levels because there is the displacement of stock from one place in the globe to the other place of the globe also has knock-on effects. Now as far as the first part of your question is concerned, the 64 SKUs are actually products. 64 products have split between, fungicides and albicides, etc. And these exactly are, you know, the result of our cultivating various alliances and relationships. Whereby, as I told you, I think last-time we are getting superior than what the market normally gets in this kind of a business. We have those alliances thereby people are giving us Generation 1 or Generation 1.5x, so we get a competitive advantage. And this sourcing strategy is a very, very important part in this business. So we do work-over a period of at least eight, nine months prior to the business plan to understand what we would need, how source it, what alliances do we need and we create those kind of contacts with people and get that material in time. So this is — this has been going on now for the last three, four years. I’m pretty confident this is a workable proposition in this business.
Anuj Jain
And uniqueness of the portfolio?
Abhay Baijal
Could you repeat that question please?
Tarang Agrawal
How — I mean, how unique is the portfolio, like for instance, some of these products like and seem to be fairly generic and not so unique, right? But if I look at something like a Heroi or a Theo or a VMO, so just wanted to get your sense on how unique are these? I mean, are there alternatives available? Because then we probably get a better handle on what’s actually driving the metrics of this business.
Ashish Srivastava
Okay. So these are — see 70% of Indian crop protection Chemical business is through generics. So only 30% is our patent or niche products. But when you talked about the product uniqueness, you know, we — as Mr Bajal mentioned that because of our relationship, now we are getting the — some of the products in the year of launch. So we are not — we don’t have to wait for two or three years for the product to be launched and then we are getting it. So we are getting — so that’s a unique mass. So we get some products in the year of launch. Secondly, depending on the soil type and harmor spending behavior, you always have to keep a portfolio. Just put one small example, say for and leafolder segment, I sell chemistry, I sell, I sell. So they are different price banks for different soil type. So that is there with almost all companies. So we also do a similar market.
Tarang Agrawal
Got it. Got it. And sir, Mr Najal, just last question, I mean, from a capital allocation, you’ve laid out about INR1,300 crores of outlay, but — but and there are you know capital projects under consideration. But from a purely from a size standpoint, what could be the ticket size of the projects that are under evaluation currently.
Abhay Baijal
They are — I a guess, but I mean, they are not small projects. That’s all I guess.
Tarang Agrawal
Sure, sir. Thank you and all the best and congratulations on a very strong FY ’26. Thank you.
Operator
Thank you. The next question is from the line of CA Ashok Jain, who is an Individual Investor. Please go ahead.
CA Ashok Jain
Yeah. Good morning, and the team. I am CA Ashok Jain from Mumbai. So my questions are basically wrong, if you refer page number 18 that is consolidated segment by revenue. So if I see there, I find that the complex larger. From the four, the revenue is INR166 crores and profit is only INR9 crores. And last quarter also the profit was very low in this segment. And I see there the stock — I mean, there is one-item which is segment asset, which is complex fertilizer. It has gone from 31st December to 024 from INR825 crores to crores. So my question is that in this segment, I mean, we are not making profit and see we are adding the asset. So it is — I mean, we must be incurring obviously opportunity financial cost. So this is what my question is how to tackle this and what is this, one is this. And second, I want to know that if I see quarter-four, our revenue from our own manufactured fertilizer is INR2,253 crores and profit is only INR79 crores, which is 3.4% is against the last quarter where it is at 17%. So can you just clarify these two issues, how to handle it? Especially complex fertilizer is being complex for me.
Abhay Baijal
Okay, Mr Jain, let me just make it clear. Yeah. We had actually built-up the stock that we have purchased tactically, I think made this mentioned. So when we purchase tactically and you will report the segment asset, the value of stock will get-in — this is not a manufactured item, there are no plant and machinery in this. So from last year to this year, there has been an increase in-stock. So that is — and that will flow-in terms of benefits when we make the sales in the current-season. So that is one part. As far as the INR8 crores and INR9 crores that you mentioned in terms of that is dependent on the sales that must-have been done. In this last quarter, we would have hardly sold 0.5 lakh tonnes or something like that. So that kind of number is possible in a small sales level. Now let’s come to the sales of own manufactured fertilizers and the reduction in margin. See this follows from the policy principle beyond the reassessed capacity when you actually produce beyond reassessed capacity in the policy, the profit metrics are quite different. And they also depend upon the debit of various types of expenses such as repaired maintenance, which are more heavy in this particular quarter because as I told you, 3 had a shutdown and there was a handful turnaround. So there is a of large amount of repair maintenance, that is one thing. And then second page, there was also a 14 day shutdown on 1 and startup expense and shutdown expense also gets. So these are the reasons why you find a large variation in the margins.
CA Ashok Jain
Can you make it more rational, something like that? Is it possible in future going-forward because it is quite low from 70% to 3.4% seems very low.
Abhay Baijal
So this is the nature of accounting in the last quarter and that is if you recognize the cost and revenue as it is for the period in last handle of how many years. And since I’ve been in this company and other companies of this type, they all do this type of comp.
CA Ashok Jain
Okay. Sir, one last question, the capex plan, you are saying that ’25-’26 it will be around INR200 crores. So my question is, how are we going to source it from the internal — I mean, accruals?
Abhay Baijal
Yes, we will do it from internal accruals.
CA Ashok Jain
Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Deekshant from DB Wealth. Please go ahead.
Deekshant Boolchandani
Hello, sir. Congratulations on a strong for this financial year. So you had alluded on how China can become a risk factor for us in the short-to-medium term. Could you give us a little bit of more color and explain us how this risk can be seen?
Abhay Baijal
No, it is — I’m just saying that China from being a very steady supplier of fertilizers and even urea to some extent has now become an off-and-on kind of party over the last three years. For whatever reasons, they are internal, they are diverting some part of their phosphoric acid capacity into battery manufacturers for electric vehicles. They could be doing it for geopolitical reasons, whatever it is. But the fact is the global supply from China is now fluctuating to some extent as against being a steadier player in the last three to four years. So that means that for certain types of P&C products, we have to shift in terms of sourcing to other geographies, which is let us say, Morocco or Saudi Arabia or Jordan or Russia or even US for instance. So the dynamics keep changing, but I am confident that overall the supply situation in the world is steady, although because of the geographical intensity of where the rock or the raw-material is found, there are kind of monopolies that get created. So that creates problems in terms of how the trade plays out as compared to, for instance, urea or ammonia, which is much, much more kind of open and many suppliers be there, so it evens out the competitive situation and you get better in negotiation capabilities. So that is what it is. That is what I meant in terms of how this will play-out. And nevertheless, I think the government and the trade and industry in India have been working assiduously to create backward linkages or to create long-term MOUs with various other countries. So overall, the supply in the world is more or less the same. So from somewhere or the other, you will get committed.
Deekshant Boolchandani
So it’s pretty reassuring to know that we have more sources to get this, but does this come at on an operating margin cost to us or even PAT level cost to us? Because I’m assuming that China would be more competitive than others and since we are on a trajectory of improving margins right now, what kind of margin guidance can you give us or just any ballpark number of improving margins that we see?
Abhay Baijal
Yeah, I will regard, I guess on margins. See, margins are dependent on how you have strategically bought. It is a kind of position taking sometimes in this business. And if you have taken a correct position for the particular margins will be looking very healthy next year, you could have made the mistake of having bought early in a falling market or having bought late in a rising market. So those things are your judgmental goal 60% to 70% and how good your judgment make the difference. Obviously, Chandal has a very strong balance sheet. Its carry cost is low, it can take positions if it wants. But that is also dependent on a less turbulent policy regime. If you know that in the PNK sector in the past, there has been a lot of turbulence in the policy and discontinued, which have prevented people of companies like us, instance in Chambal, not to take long bets in the in the market. So that’s the reason why you have seen volumes having shrunk to some extent. But as the policy now starts to open and get rationalized, the volumes will spring back.
Deekshant Boolchandani
That’s, sir. Sir, out-of-the INR1,600 crores of capex that we are doing, what kind of revenues can we see just adding up on our top-line in FY ’26 or even, let’s say, full calendar year because we are starting from January. So what kind of how could the four quarters be if INR1,600 crores of capex has been done?
Abhay Baijal
So first of all, our calendar year — I mean our financial year starts from April, not January.
Deekshant Boolchandani
We can
Abhay Baijal
Look at what was from April to March ’26, it is about INR1,250 odd crores. Most of it is getting into the TAM project, almost INR900 crores, if I’m not wrong. And INR300 odd crores is routine capital expenditure, which is for replacement and for renewal and reliability. So those are the type of products which are — of course, those types of projects also have some knock-on benefits here and there in terms of either small margin expansions or increase in capacities because reliability increases, you are able to run a number of days in increases. So those kind of things also happen. So, but — and but from the point-of-view of certain changes, these plants are highly complex and require equipment changes over a period of 15 20 years. So that is factored into this type of capital expenditure that we are doing. So the benefits that will flow, as I said, first of all, in the TAM project, obviously, once the project gets commissioned, it will try and achieve — we will try and achieve capacity utilization and EBITDA, et-cetera will flow from that. That is first of all. And secondly, in terms of those replacement capital expenditures or their small margin improvements or I think reliability will improve the capacities or something to that right? So those are the things that you can expect in ’26 — ’25, ’26 and ’26, ’27.
Deekshant Boolchandani
So just trying to get a number on what kind of revenues and EBITDAs can we see once this TAN project is getting commissioned and is being utilized with the equipment that
Abhay Baijal
You see PAM project is given as 2,40,000 tonnes of capacity. And you can do the math that currently, I think the product sells at between INR35,000 to INR40,000 a ton given various types of scenarios that you can. So you can do a multiple of that, that is on full capacity, what is the number? And what is the — at 70%, 80%, we can take a guess being the first year of operations.
Deekshant Boolchandani
What could be our operating margins on this, sir?
Abhay Baijal
And that you get benchmark with the industry
Deekshant Boolchandani
Sure, sure, sure, sure, sure. Thank you so much, sir. This is very reassuring comment. Thank you, sir.
Operator
Thank you. The next question is from. Yes, sir. Thank you. The next question is from the line of Sophiya Masta from Elara Securities. Please go ahead.
Sophiya Masta
Hi, thank you so much for the opportunity. I just wanted to know where does our net-debt stand as of 31st March net-debt of cash.
Abhay Baijal
I’m not wrong, we are actually net-debt is negative.
Sophiya Masta
Okay. Okay. Thank you so much.
Operator
Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Limited. Please go ahead.
Sandeep Mukherjee
Hi, thanks for taking the question.
Operator
Sorry to interrupt, sir. I would request you to please use your handset.
Sandeep Mukherjee
Am I audible?
Operator
Yes, sir. I would request you to be a little louder.
Sandeep Mukherjee
Thank you. Okay. Sir, thanks for taking the question. Sir, what is the ammonia sales number in the total sales?
Abhay Baijal
I think I mentioned 1 lakh 03 — 1.03 lakh metric tons. And average, I would say we would have sold between INR40,000 to INR45,000 a ton.
Sandeep Mukherjee
Okay, sir. Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Chandra Gupta, who is an Individual investor. Please go ahead.
Chandra Gupta
Hello, am I audible?
Operator
Yes.
Chandra Gupta
Okay. Thanks. Thanks for this opportunity, sir. I just have one question. Recently, there was a news report about India, the government giving rights for mining in Rajasthan. So would we be interested in these kind of projects? Your thoughts on this?
Abhay Baijal
Mr Chandra Gupta, first of all well, if the mine is adequately the scene is rich, I would say, if we — what my understanding is that there are small pockets of the potash and it may require beneficiation to get it to the right quantity because when you sell potash in the market as trade potash, it has to be almost 60% KCL. And my understanding is that this is not of that grade, how low it is or how high it is, we will have to check. My initial inquiries showed me that it is a lower-grade material, which will require quite a bit of benefication. And one has to also examine the economics vis-a-vis import or other suppliers. Traditionally, you have got potash in the region of $220 to $350 per ton. One has to do the math to understand from a mining point-of-view what will the cost of making this potential available from these sort of low-grade seams or quality or whatever the quality of the mine is. So it’s more to do with how you allocate capital in what kind of areas and with what kind of returns expected.
Chandra Gupta
Okay. So we haven’t shown any interest in the. I understand that. That’s it from my side.
Operator
Thank you. The next question is from the line of Manish Mahawar from Antique Stock Broking. Please go ahead.
Manish Mahawar
Yes, sir. In terms of a — I believe government is thinking to I think increase the fixed-cost reimbursement to the players, right? Just wanted to know your thoughts on how the discussions
Abhay Baijal
This is a work-in progress right now what going to happen.
Manish Mahawar
Okay. But historically, sir, when this fixed-cost has been increased in the — for the industry.
Abhay Baijal
See, the last-time it was done, this exercise was done, whether increase or decrease, I don’t know was done in 2002 and 3. And there was in 2014, a roughly INR350 rupees per ton kind of adopt increase given to all people in the industry. So I don’t know where they are on this matter, but there are discussions happening and there are lot of different points of view on this issue. As and when we come to know, we will keep you informed.
Manish Mahawar
Yeah, sure, sir. And secondly, sir, in terms of your crop protection business, right, what we did was INR900 crore top-line. Is it possible to share the number geography-wise, maybe North, Southeast, West, West to understand how our penetration or distribution is strong.
Abhay Baijal
We are selling in all parts of which
Manish Mahawar
Any bifurcation in terms of which party is stronger or is still I can’t say we have —
Abhay Baijal
You see wherever we have our presence by way of fertilizer sale or wherever our locations are. And you know that we have got almost 28 29 locations. We are in UP, we are in, we are in Punjab, we are in Gugarat, we are in Maharashtra, we are in Bihar, we are in, we are in Telangana, Pradesh, everywhere, little or more. This is a product which is a priority for us and it’s doing well as you see. So — and then various areas, various crops, various types of molecules, they also have to be product market fit is there. So it’s a little involved subject to just tell you on this on this phone.
Manish Mahawar
Okay. And secondly, sir, on the corporation business, any basically the intent to go-ahead with export as a market, as I know, right, export needs our plant or manufacturing to go-ahead with. So any intent in the future?
Abhay Baijal
See, I’ll tell you what, this is a perennial question which people keep asking me whether export production or formulation by ourselves. So we have looked at various opportunities in the past. I would not say that we are not. But most of the time, when you do the math in terms of acquisition cost versus the return that we may expect, the returns come out to be lower than what we would be doing in this mode itself. So there is a big dichotomy or disonance in our mind is to go about as to how to do this. So that does not mean that we do not look at opportunities. Sometimes you might find a very reasonable asset and a offer could be made and accepted. So I’m never ruling out that possibility?
Manish Mahawar
Okay, understood. And last one, sir, in terms of your GV partner, right, what was the — basic the profitability has significantly improved it this year to is can it possible to share the production number of your JV or maybe this is profitably improved on account of spread — better spread?
Abhay Baijal
I think they did about 4,90,000 90,000 tons close to that. And I would suggest Mr Jain to give you a brief ballpark number that they are from this.
Anuj Jain
See, they did about 5.25 lakh ton of production and about 4.35 lakh ton of.
Manish Mahawar
Okay. And sir, can you possible share the last year number please?
Anuj Jain
Last year, it was about 4.35 lakh ton of production and about 3.8 lakh ton of field.
Operator
Okay. Understood, sir. That’s from my side, sir and all the best. Thank you so much. Thank you. Ladies and gentlemen, you may test star and one to ask a question. A reminder to all the participants that you may test press are unwan to ask a question. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Abhay Baijal
So thank you very much ladies and gentlemen, for your participation in this call we hope that we have been able to satisfy your queries. In case there is any further requirement of any further information, you can reach-out to us. Thank you so much.
Anuj Jain
Thank you.
Operator
Thank you. On behalf of Chambal Fertilizers and Chemicals, that concludes this conference. Thank you for joining us and you may now disconnect your lines.