Indian Potash Growth

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. 

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. 

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.

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.

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.

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.

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.

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