Shree Pushkar Chemicals & Fertilisers Limited (NSE: SHREEPUSHK) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Pankaj Manjani — Company Secretary & Compliance Officer
Punit Makharia — Founder Chairman and Managing Director
Deepak Beriwala — Chief Financial Officer
Analysts:
Unidentified Participant
Harshil Solanki — Analyst
Sauresh Pal — Analyst
Raman KV — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Shri Pushkar Chemicals and Fertilizers Q3 FY ’25 Earnings Conference Call. As a reminder, all participant lines will remain in the 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 the operator by pressing star, then zero on your touchstone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr Pankaj Manjani, Company Secretary and Compliance Officer. Thank you, and over to you, sir.
Pankaj Manjani — Company Secretary & Compliance Officer
Good evening, everyone, and I welcome all the participants to Shree Pushkar Chemicals & Fertilisers Q3 FY ’25 Finance Call. Joining us today from the management side, we have Mr. Punit Makharia, Chairman and Managing Director; Mr. Deepak Beriwala, Chief Financial Officer. Now I will hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.
Punit Makharia — Founder Chairman and Managing Director
Thank you, Pankaj. A very good evening to everyone, and welcome to Q3 FY ’25 Earnings Call of Shree Pushkar Chemicals & Fertilisers Limited. Friends, I hope you had an opportunity to review our financial results as well as investor presentations, which are available on the stock exchange as well as on the company’s website. As a reflect of our performance for the third quarter, we are pleased to report consistent growth across our business segments, supported by strong demand trends and a favorable industry environment. Our Fertiliser division saw a sales volume increase to 70,046 metric tons, marking a substantial 49.9% growth year-on-year while our Chemical division recorded sales of 15,147 metric tons, reflecting 2.3% decline compared to Q3 FY ’24. Overall, total sales volume of the quarter reached 85,193 metric tons, a year-on-year increase of 36.1%. Hence, in line with our expansion strategy we have invested INR16.41 crores in CapEx during Q3 FY ’25, bringing the total capital expenditure for the year up to INR84.9 crores as on December 31, 2024, and the entire funding is through internal accruals. These investments focus on increasing production capacity, improving cost efficiency and reinforcing our competitive edge in the market. A key milestone during the quarter was approval of scheme on amalgamation between our wholly owned subsidiaries, Madhya Bharat phosphate Private Limited and Kisan Phosphates Private Limited. This merger is a strategic move aimed at streamlining operations, optimizing resources, allocation and enhancing synergies across the group. By consolidating this business, we expect achieve cost efficiency and eliminate risk and strengthen our business position in fertiliser sector. This initiative aligns with our broader goal of driving long value creation for our stakeholders. A key highlight of our financial strategy remains non-lien deposit facility, which stood at INR146.19 crores as on 31st December 2024. This facility provides us the strong liquidity and financial flexibility, enabling us to support both ongoing operations as well as future strategic initiatives with the confidence. Hence, looking ahead, we remain optimistic about our business environment, supported by infrastructure development, manufacturing growth, a favorable government initiatives. We will continue to leverage these opportunities through strategic investments, operational efficiency and a sharp focus on sustainable growth. With that, I would like to hand over the call to our CFO, Mr. Deepak Beriwala, to walk you through the financial performance of the quarter. Over to you, Deepak.
Deepak Beriwala — Chief Financial Officer
Thank you, sir. Good evening, everyone, and thank you joining us today. I will now take you through the highlights of our financial performance for the third quarter of FY 2025. In Q3 FY ’25, the Fertiliser division achieved a sales volume of 70,046 metric tons, marking a substantial growth of 15% and a strong 49% increase compared to Q3 FY ’24. Meanwhile, the Chemical division delivered a surge volume of 15,147 metric tons, leading to a decline of 2.3% quarter-on-quarter and year-on-year, a decrease of 4.6%. Together, these results brought a total sales volume for the quarter to 85,193 metric tons, a 36% year-on-year growth. For nine months FY ’25, the Fertiliser division maintained its growth momentum, achieving a 31.7% increase in volume reaching 2,00,664 metric tons. Meanwhile, the Chemical division exhibited stability, recording a 1.5% in volume totaling 46,600 metric tons. On the financial front, consolidated revenue for Q3 FY ’25 stood at INR217 crores, registering a 24.3% growth year-on-year. EBITDA for the quarter was INR22.4 crores, up by 60% year-on-year, translating to an EBITDA margin of 10.3%. Net profit for Q3 FY ’25 came in INR15.9 crores, representing a year-on-year growth of 108% with a net profit margin of 7.30%. For the 9 months ended December 31, 2024, our revenue reached INR586.9 crores, reflecting a growth of 9.6% compared to the same period last year. EBITDA for the 9 months amounted to INR59.2 crores, a 41% increase year-on-year with an EBITDA margin of 10.1%. Net profit for the 9 months was INR42.1 crores, a significant 75% improvement year-on-year, yielding a net profit margin of 7.2%. With that, we open the floor for questions. Thank you so much.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line from Preet from Wealth Finswork. Please go-ahead.
Unidentified Participant
Yes, sir. Good afternoon. I wanted to congratulate the management on delivering very strong numbers. Punitji,
Punit Makharia
What about you for keeping faith and trust in the company. And we’ve been always trying our level best to be very transparent and give the actual visibility what we feel so. And by grace of the God and thanks to our team which have been successful in doing — achieving the targets what we plan. Still, we have to go a long road ahead. Let’s see. God is great, we’ll do that.
Unidentified Participant
Should we assume that sense that you’ve made strong performance in Q3?
Punit Makharia
That was always around INR800 crores total revenue. And by Q3, we have done almost INR586 crores. So, I’m quite hopeful that we will go above INR800 crores. So I think we’ll be able to achieve this INR800 crores plus business in this financial year. This is what we had targeted and we visualized before.
Unidentified Participant
Right, sir.
Punit Makharia
Sir, if BIS may products is really a update IR government car the Bureau of systems sir. So Uska sir can impact your company? I’m assuming positive over, but if you can shed some light positive over sir Herba is a con. How are you almost full stop Majay, China says SAB import other app database. So China say imports,, sir import may down. Sorry I should not say like this but things would be much better sir. Visibility may say notification implemented. Right, sir. Discuss which early impact on where people have started the ordering more Q4 may have a first-quarter of next year because a may because it was underlying have right or shipments only.. So sir, it’s going to impact volume realization, but yeah, sir. On volume realization because of low capacities of, our other capacities to share Bana Pow way. But definitely the — can the realization can impact on our plus China has your competition here. Oh, or competition, answer because Parik may to get an BIS update in this approval to the Chinese company looks bit difficult. Right, sir. So sir, next year the guidance achievable. Other answer, yes, I’ll have to FY ’26 expect given. Minimum 25% the growth extra customer crores of social target revenue for FY ’26. Which can be visibility behind the. Many Baki otherwise are Dihai Maharaju Unit, five expansions you have Obium, plus do unit Sheika expansion Obi Khanake, Diwalika Aspa, right improve a channu over a year? Yes, I mean, last con-call can there be Kahata. But if you go to in the back, low almost 5% of part. I think are 35%. EBITDA margins will improve, PAT margins will improve by sir. So things are increasing, sir. Numbers say you know the things are coming back-in stream.
Unidentified Participant
So sir, could we expect 14% EBITDA for FY ’26 other year 50% top-line growth entire or possibility decree? Or time or better or are result also time battery I guess, sir. Specific number which was with the other thing I can make this very make it both conservative to some, sir. Right. But our geopericity much better, I guess sir. Regards that 4th-quarter DJ, I would be able to address this your question also somewhere by the end of Q4 earnings. Enough. But sir, yes, Bangladeshka impact, of course the crisis all go impact as we go impact. Just, Bangladesh can impact because we have been doing smooth business with Bangladesh.
Punit Makharia
None of our the shipments have been held out, none of our payments have been held out. None of our customers has given any impression I was never under depression about Bangladesh. These might be countries to countries where in the sector where we are, I don’t see any issues to those sectors. And plus the America was never our market and still is not our market. Neither we buy anything from America, neither we sell anything to America.
Unidentified Participant
None of our customer has given any impression impression again Bangladesh economy textile personal right. I think I thought about the hiccups beach me, I only said that is all because of the political motivated issues there back-in Mujay, Bangladeska, Matlab, I was never the you know this under depression about Bangladesh. Sir, sir, order book or chemical key sir, Aga. Sir, before the key order book pass.
Punit Makharia
It’s so the sir. But going quarterly contract, yearly contract. Yes, sir, practically just Bajar, and, gone would you see behind the way yet right is a long-term contract workable in utasa. Is up, Uper of how many difference other than. So linear not. Sir, so just above mid-February battery order book up, at least March and the coffee booked out of quarter, right? Yeah, no lega sector. Total book here March customer absolutely visibility. Right. Got it, sir, sir. Or sir, capex that was updated by the key. Those of crore capex now. So to the exceptional is loan investments per day. Or,,, Diwali, those are. We should be able to come in trial production or maybe by December share commercial production. Joe CapEx method unit five expansions are which we are starting in April together, sir, units are completed via unit. Solar growth are 3.8 megawatts of complete Karbia sir. MDPI can almost complete Karbia sir. Kali, unit or unit,, unit pass 9 at the April Mechal or the unit share in any Diwali. Is that a revision could come. Which we are seriously thinking scrap outside caustic proposal or caustic and very internal consumption he did a on sorry,, MAG. Monthly consumption, plus caustic and the metal type chlorine. Our chlorine the internal so capacity. So what we were thinking is that to go for a caustic 50 TPD plant wherein our entire requirement is meat as well as we get chlorine also for our home consumption. So who plant your point look working, but we are almost on the verge of scrapping it. So sir, Agar scrap to Abhi or Kitra requirement by sub very much scrap to up exo. So all INR85 crores is. If I discuss, it’s up there product. Correct, correct. So after probably bank right, sir. Right, sir. Sir, sir, econ question,, sir, Joe global, no changes are but of course environment positive, negative could you speak which are may request me visibility, but I, I don’t want to prove myself a very great intellectual man. Sir. Mujay visibility, many years. Baki Joe Amlo Kam. Both field man, policies there, these might be countries to countries, wherein the sector wherein we are, I don’t see any issues into those sectors and plus China, this America was never our market and still is not our market. Neither we buy anything from America, neither we sell anything to America. Right, sir. Sir,, chemicals or utilization, yeah, percentage.
Unidentified Participant
Right sir.
Punit Makharia
Same way, I think this 15%, 20%, whatever is the balance is there, can be ramped up immediately, that’s not a big issue. There was a fire accident in our factory at unit number One, because of that accident, our unit was closed for almost 45 days, which has been reported to the exchange also.
Operator
The next question comes from the line of Harshil Solanki from Equitree Capital. Please go-ahead.
Harshil Solanki
Hi, team. Good afternoon. Sir, give. Last quarter, how many inventory built the other or the quarter for at a higher price. But again, current quarter. So may degrowth. So key degrowth, basically volumes sir, degrowth dies business like Kaha say and we’ve seen de-growth.
Punit Makharia
Sir, Q2 FY ’25 May, 732 tonnes of the dies we had sold, Q3 ’25 965 tonnes we have sold after degrowth acid business may be. But co acid business can degrowth behind, but that is mainly because of our subsidiary, Kissan Phosphates Private Limited. In that particular period, Kissanka plant shut-down May because acid business was Chalice then annual shutdown asset. So keep occurring, it was my de-growth growth assets, almost be growth even not okay, sir. Chemical division. You are specific on a dice vertical and — but if you look at it as this is overall, so you will see Kird as a degrowth that is mainly and only because of the acid business because Kissan’s acid plant was under shutdown. Okay. But sir,, inventory to and to go beta, right? Production a big impact to our of Q4 of volumes come. It’s negative vertical so much as I say multiple scale products can the man is so much stronger, vertical way. Are you talking about intermediates, dials, fertilizers, animal health, acid, other cheese, I say, Savaluko Saval. So it’s not breakup so available that I’m saying the last quarter is it was Q2 FY ’25, 732 tonnes of the dyes we’ve sold. Q3 ’25, 965 tonnes we have sold. as it is mainly because of our subsidiary, Kisan Phosphates Private Limited. In that particular period, sir, you were specific on dyeing vertical. But if you look at it overall, so you will see that is mainly and only because of the acid business because Kisan’s acid plant was under shutdown. Are you talking about intermediates, dials, fertilizers, animal health, acid, other cheese, I say, Savaluko Saval. So it’s not breakup so available that I’m saying the last quarter is it was was inventory build or go home.
Harshil Solanki
But fired was acid car volume impact via Mana. But man, I have a — sorry, intermediate, so Satur say, so obviously, it’s a system. So almost in, Tanki, inventory see that has been sold-off same way it was in also. If you put all together, it is 2802 tonnes of dyser intermediates in Q2 and during plus 9, 65 is still anything is there, you can get-in touch with partners they will come back to us and we’ll try to address you query.
Punit Makharia
Same was in dyes also. If you put all together, it is 2,802 tonnes of dyes of intermediates in Q2. If still anything is there, you can get in touch with partners, they will come back to us and we will try to address it locally. Sir, any business, any industry you do, this has to be stable and sustainable footings that is not the concern which takes a greater market share of DAP in case of shortage of DAP. But anyway, we are not relying upon the DAP shortage of the excess DAP supplier or regular DAP supplier. Mainly, we are building our own brand and customer base, whereas you know we are not dependent on the DAP thing. But yes, Now in this financial year, I think we should be touching close to our marketing is doing good, and the people are having a great penetration into the market also.
Harshil Solanki
Thank you, sir.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Sauresh Pal from KRSP Capital Limited. Please go-ahead.
Sauresh Pal
Yeah, thanks for the opportunity, sir. Sir, as I can see, if I compare our volumes and revenue from quarter 2 to quarter 3, I can see that both in Fertiliser as well as Chemical division, the revenue growth is more than volume growth or volume degrowth, whatever. So there is clear — it is clear that there has been a price increase that we have enjoyed in quarter 3. But in your presentation, you have reported that there is a contraction in gross margin. So I don’t understand. If pricing has improved because revenue growth is more than volume growth, then how come there is a reduction in gross margin, sir? That’s my question.
Punit Makharia
Let our CFO see in the data about this, your question, sir. Deepak you understood his question? He says that in gross margin, there is a compression. That is right?
Sauresh Pal
Yes, sir, yes, sir. In this presentation, in the slide — PPT slide also it is there.
Punit Makharia
Page number?
Sauresh Pal
Yes, just a second. Let me open it. Just a second. It is towards the end. It is towards the end. Let me tell you that slide number, let me open it. It is a Page number 7, sir, Yes. Page number 7. Sir, am I right about the pricing growth? That’s what I’m right, right? That there has been a pricing increase in quarter three from quarter two.
Punit Makharia
Ex second year, executing.
Sauresh Pal
Sorry, correct page number seems page number — yeah, page number seven like page number three and nine months FY ’25 consolidated profit and loss segment
Punit Makharia
In gross profit, there is contraction.
Sauresh Pal
Yes, yes.
Punit Makharia
Punit Makharia
Because we can’t see. Our CFO can’t see. Because here what we see is that EBITDA margins have improved from 8% to 10.3%. Here you can see the EBITDA amount has gone from INR14 crores to It is mainly because of change in inventory, sir.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Anshuman, an individual investor. Please go-ahead.
Unidentified Participant
Hello, Pune jee, congratulations for great set of numbers. Her con-call may watch after great hard work.
Punit Makharia
Uday and you have been always an this inspiring investor to us are Ampur Bush or Deke. Thanks for that, sir.
Unidentified Participant
Thank you, sir. Sir, 14 questions say if you Amal, Kiak, Kessan, private Kissan or Iska, Bharatka. If we say Pushkarke your original balance is car, top-line may for 100% don’t subsider via Pushkari as a. Yes okay, okay, okay, okay.,, those subsidiary here.
Punit Makharia
Okay. He jokna fertilizer Maya plant Johanika ahead is a tentative top-line make-up say because Diwali was not the? It’s just September may trial game Diwali summer. Saudi Diwali may trial or Diwali may I get trial. Okay, I have to by the 3 Q4 to Pura Milega or other Q4 Mila. So sir, at any revenue persistent this.
Unidentified Participant
Okay. So sir, last con-call and guidance via the Hamlo, he this FY ’25, we should be doing somewhere around 60 65 and next year are tentatively 80, 80, 85, 60 a year-after profit, the outlook sir, mostly both conservatively on many start who odd percent tried to keep, odd percent the of, manager, but we are saying that you start to keep currilling it. So sir, next year fertilizer core Q4 FY ’25 with to AT Anuman is said better?
Punit Makharia
Yeah. I up to INR80 crore of INR320 croresa will happen, yes, I’m hello, Kibai, yes, I’ll, visibility of Dira also crore give visibility under SAT crore-plus minus say visibility of. Sir, SAT crore-plus minus key visibility of Dikray. As well as ate, Hajar yes, sir or maybe they say yes, Sat only odd be pet who are uki. Are odd, but odd percent say like Pet sir. It’s no shock to you up un next year, Bhat Kara Pandra is 50% jump.
Unidentified Participant
This FY ’25, we should be doing somewhere around INR60 crores, INR65 crores. And next year, tentatively INR80 crores, INR85 crores.
Punit Makharia
These all factors will work in our favor. Calculation, you always cost this calculate close to 4% as a hedging cost.
Unidentified Participant
4% as a hedging cost.
Unidentified Participant
We will be more competitive. Okay, thank you very much and all the very thank you, sir.
Operator
We take the next question from the line of Raman KV from Sequent Investments. Please go-ahead.
Raman KV
Congratulations on good set of numbers. Sir, I just wanted to understand how sulfuric acid prices have panned out in the last four, five months?
Punit Makharia
Sulfur has been also behaving in a similar manner. So this is a line. Let me tell you whatever the increase of the sulfur prices have been there impacted into the market, the same kind of result or that we have been able to pass on the cost of sulfur to our acid business.
Raman KV
So you have been able to pass on the prices.
Punit Makharia
We are able to. We are able to — we don’t have refinery business. We source it from outside.
Raman KV
How do I say every quarter or every month?
Punit Makharia
Either you want to supply sulfur to the company or you are into sulfur bases.
Raman KV
I just wanted to understand sulfer prices and then…
Punit Makharia
It mainly into the imports, and it is a continuous effort. It’s a continuous input of the material. in that time, we go into the market and buy locally. Liability of sulfur is onto the imports because we are almost equity so whenever we calculate and buy sulfur, we always calculate the net of the moderate lending price at plant. So looking at the transport, another cost, you always see that the import is more vital a, because of the price; b, because of logistically also, since we consume almost 4,000 tonnes of sulfur in a month, So therefore, we always prefer imports. I wouldn’t like to comment on any such opinions about the competition.
Raman KV
Okay. Sir, what are the margins with respect to Fertiliser business and Chemical business EBITDA margin?
Punit Makharia
Because ours is a consolidated business. So it is difficult to take out the intermediate dyes, fertiliser, animal health, acid we have a consol margin practice. So we don’t have any such independent because the whole operation is consolidated.
Operator
As there are no questions, I now hand the conference over to Mr. Punit Makharia, Chairman and Managing Director, for his closing comments.
Punit Makharia
Thank you, everyone, for joining our Q3 and nine months FY 2025 earnings call. If you have any further questions, please feel free to contact our Investor Relations adviser Churchgate Partners, and we’ll be great happy to address you. Thank you, gentlemen. Thank you, friends.
Operator
On behalf of Shree Pushkar Chemicals & Fertilisers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.