RATING

RECOMMENDATION

Strong Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Buy

Business Type

Traditional Business

RATING

RECOMMENDATION

Strong Buy

Business Type

Traditional Business

  • Indian Potash Growth

Read Indian Potash Peer comparison at research report page to know about Indian Potash Growth journey, Net Profit Growth, Book Value Growth, Operating Profit Growth and more so read research report to get detailed information on Indian Potash Pre IPO, Upcoming IPO date, company review etc.

Indian Potash Revenue Growth

Growth in %

  • 13.05%

    1 Year

  • 6.96%

    3 Year

  • 0.11%

    5 Year

In FY21, the revenue of the company increased by 13.05% year-on-year (y-o-y) with an increase in the sale of urea, di ammonium phosphate, and other fertilizers as the economy recovered in FY21 from covid-19 restrictions. Moreover, in FY21 there was an increase in the sale of products, sale of services, and government subsidies as compared to the last year. Initially, in FY21, panic buying by farmers and dealers coupled with lower international prices, particularly of MOP had led to an increase in the sale of fertilizers. Farmers were stocking up fertilizers for the Kharif season and were gradually building up stocks for the Rabi season in order to avoid any logistical issues. While the fertilizer demand and consumption have increased whereas the sale of sugar has decreased owing to a sharp reduction in the production of ice creams, bakeries, cold desserts, etc. However, the fall in domestic demand is partially made good by stepping up exports. 

Indian Potash Net Profit Growth(PAT)

Growth in %

  • 126.12%

    1 Year

  • 34.87%

    3 Year

  • 39.73%

    5 Year

In FY21, the net profit of the company increased in 2021 by 126.12% y-o-y due to an impairment gain of Rs. 269.8 crores in FY21 as compared to an impairment loss of Rs. 269.8 crores in FY20. Moreover, the economy recovered in FY21 with an uptick in revenue as the economy recovered from covid 19 restrictions and the company paid fewer finance costs in FY21. The turnover of FY21 is the highest in the last 8 years. The growth in income is entirely due to higher volume sales as per the tonne realization during the year had gone down due to subsidy reduction of Rs. 604 per tonne with effect from 1.4.2020 and two MRP reductions of MOP Rs. 1500 in May 2020 and Rs. 500 in Nov 2020. 

Indian Potash EPS Growth

Growth in %

  • 126.12%

    1 Year

  • 7.05%

    3 Year

  • 21.52%

    5 Year

In FY21, the EPS of the company increased in 2021 by 126.12% y-o-y due to an impairment gain of Rs. 269.8 crores in FY21 as compared to an impairment loss of Rs. 269.8 crores in FY20. Moreover, the economy recovered in FY21 with an uptick in revenue as the economy recovered from covid 19 restrictions.

  • Indian Potash Book Value Growth

Growth in %

  • 18.25%

    1 Year

  • 16.27%

    2 Year

  • 17.34%

    4 Year

In FY21, the book value of the company increased by 18.25% year-on-year (y-o-y) due to the high retention ratio. The company has decreased payout ratio and increased retention ratio which in turn has increased the reserves and surpluses, thus increasing the book value of the company.

Indian Potash EBITDA Growth

Growth in %

  • 17.73%

    1 Year

  • 9.05%

    3 Year

  • 19.14%

    5 Year

In FY21, the EBITDA of the company increased by 17.73% year-on-year (y-o-y) due to an uptick in revenues of the company by 13.5% y-o-y. Moreover, the company received a net gain on foreign currency transactions and translation of Rs. 159.3 crores in FY21 which was not recorded in FY20.

Indian Potash Operating Profit Growth

Growth in %

  • 19.13%

    1 Year

  • 9.55%

    3 Year

  • 18.83%

    5 Year

In FY21, the operating profit of the company increased by 19.13% with an increase in the revenue of the company as the company recovered in the current year from covid 19 restrictions.  Moreover, the company received a net gain on foreign currency transactions and translation of Rs. 159.3 crores in FY21 which was not recorded in FY20.

Indian Potash Asset Growth

Growth in %

  • -10.33%

    1 Year

  • 0.95%

    3 Year

  • 3.16%

    5 Year

In FY21, the total assets decreased due to a decrease in trade receivables in FY21 as compared to last year. Trade receivables were recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

Indian Potash Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • 33.20%

    3 Year

  • NA

    5 Year

In FY21, the cash flow from operation of the company became positive because of more cash collected by the companies debtors as the company recovered from covid 19 restrictions

  • Indian Potash Solvency Ratios

Indian Potash D/E Ratio

In FY21, the debt-to-equity ratio of the company decreased because the equity of the company increased due to an increase in the reserves and surplus by 23% in the current year. Moreover, the company paid off its debt in FY21, which is good for the company's financial health.

Indian Potash Current Ratio

In FY21, the current ratio of the company increased to 1.22 in FY21 from 1.18 in FY20, as the current liabilities decreased more than the decrease in current assets. Current assets decreased due to a decrease in trade receivables in FY21, whereas current liabilities decreased due to a decrease in current borrowings and trade payables

Indian Potash Quick Ratio

In FY21, the quick ratio of the company remained around 0.84 in FY21 as the quick assets and current liabilities both decreased in FY21.

Indian Potash Interest Coverage Ratio

In FY21, the interest coverage ratio of the company increased by 100% compared to the last year because of the company's high EBITDA compared to the interest payment accrued by the company as the company increased its revenue and with the decrease in interest expense of 40% in the current year.

  • Indian Potash Operating Efficiency

Indian Potash Operating Profit EBIT Margin(OPM)

In FY21, the EBIT margin of the company increased by 6% compared to the last year only because of increased sales made by the company due to easing of covid-19 restrictions in FY21 year-on-year (y-o-y). Moreover, the foreign currency translation and transaction gains for FY21 was Rs. 159.3 crores which was not the case in FY20.

Indian Potash Profit Before Tax Margin (PBT Margin)

In FY21, PBT margin of the company increased because of uptick in the revenue while its fixed expense was stable, which increased its PBT margin. Moreover, the company recorded impairment gain of Rs. 269.8 crores in FY21 whereas the company recorded impairment loss of Rs. 269.8 crores in FY20 which also led to the increase in PBT margin in FY21.

Indian Potash Profit After Tax Margin (PAT Margin)

In FY21, PAT margin of the company increased by 100% as the company with uptick in revenues in FY21 and its cost of goods sold not increasing in FY21. Moreover, the company recorded impairment gain of Rs. 269.8 crores in FY21 whereas the company recorded impairment loss of Rs. 269.8 crores in FY20. Also, the company paid less finance cost in FY21 year-on-year (y-o-y) which led to increase in PAT margin.

  • Indian Potash Profitablity Ratio

Indian Potash Return on Equity(RoE)

In FY21, return on equity of the company increased by 91.2% in the current year due to uptick in net income earned by the company as the company recovered from covid 19 restrictions. Moreover, there was impairment gain of Rs. 269.8 crores in FY21 versus impairment loss of Rs. 269.8 crores in FY20. Also, the company paid less finance cost in FY21 vis-a-viz FY20.

Indian Potash Return on Capital Employed(RoCE)

In FY21, ROCE increased slightly to 20.98% from 20.08% as the company's profitability increased due to uptick in net income earned by the company as the company recovered from covid 19 restrictions. Moreover, there was impairment gain of Rs. 269.8 crores in FY21 versus impairment loss of Rs. 269.8 crores in FY20. Also, the company paid less finance cost in FY21 vis-a-viz FY20.

Indian Potash Return to Assets (RoA)

In FY21, return on assets of the company increased by 102% with increase in net profits by 126% in FY 21  with total assets decreasing by 10% in FY21. Moreover, there was impairment gain of Rs. 269.8 crores in FY21 versus impairment loss of Rs. 269.8 crores in FY20. Also, the company paid less finance cost in FY21 vis-a-viz FY20.

  • Indian Potash Valuation Ratios

Indian Potash Dividend Yield

Indian Potash Earning Yield