Chambal Fertilisers Q4 net expected to dip 3% to Rs 90 cr

Chambal Fertilisers and Chemicals is set to declare its fourth quarter (January-March) results today. Analysts on an average expect net profit of the company to fall 3 percent year-on-year (6.5 percent sequentially) to Rs 90 crore during the quarter, according to CNBC-TV18 poll.

Total income is seen declining 18.5 percent Y-o-Y (26.5 percent quarter-on-quarter) to Rs 1,535 crore in March quarter, mainly due to sharp drop in fertiliser trading.

Also Read - ONGC inks MoU with KK Birla Group co for fertiliser unit

Fertiliser trading is likely to come lower as high inventories of complex fertiliser in the system discouraged trading during the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to slip 30.5 percent Y-o-Y (22 percent Q-o-Q) to Rs 165 crore in fourth quarter.

Meanwhile, operating profit margin may drop 170 basis points Y-o-Y (increase 70 basis points Q-o-Q) to 10.8 percent in the quarter.

According to analysts, sales volume of urea and traded fertilisers are expected to be lower YoY, primarily on account of inventory push during Q4FY12.

Shipping business may also remain under pressure due to weak charter rates.