Latest news with #Iffco
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Business Standard
17 hours ago
- Business
- Business Standard
Cooperative major Iffco appoints KJ Patel as new MD, replaces Awasthi
Cooperative major Iffco has appointed K J Patel as its new Managing Director (MD) with former chief U S Awasthi's term ending on Thursday. Iffco Chairman Dileep Sanghani announced Patel as the new MD, the cooperative said in a statement. Patel, who was Director-Technical at Iffco, holds a mechanical engineering degree from Saurashtra University and has a rich experience of more than 32 years in the maintenance of Nitrogenous & Phosphatic fertiliser plants. He was heading the Iffco Paradeep Plant, the biggest complex fertiliser plant in India. "Patel brings deep industry knowledge and, proven strategic thinking approach that aligns with the goals of Iffco," Sanghani said. Further, he said the board is confident that Patel will steer Iffco into a new era of innovation and value creation. Sanghani also thanked the outgoing MD US Awasthi for his invaluable contribution and dedication to Iffco as well as farmers across the country. Iffco posted a 16 per cent increase in net profit to Rs 2,823 crore and a 4.5 per cent growth in turnover to Rs 41,244 crore during the last fiscal on higher sales of conventional soil nutrients as well as nano liquid urea and nano liquid DAP. It had clocked a net profit of Rs 2,443 crore and turnover of Rs 39,474 crore in the 2023-24 fiscal.
Mint
29-05-2025
- Business
- Mint
Iffco expresses concern over slow adoption of its nano-fertilizers
Nano-technology-based fertilizers which contain plant nutrients in very small particle sizes have witnessed a lower-than-anticipated adoption, according to U.S. Awasthi, managing director, Indian Farmers Fertiliser Cooperative Ltd. (Iffco). Iffco launched the world's first 'Nano Liquid Urea' fertilizer in June 2021 and came up with Nano-DAP (di-ammonium phosphate) fertilizers in April 2023. "The adoption of nano fertilizers is lower than anticipated as compared to solid fertilizers," said Awasthi, after announcing the financial results for Iffco. the country's largest agro-fertilizer manufacturer and distributor. He put this down to a lack of awareness of these high-efficiency fertilizers and reluctance among farmers. This is in spite of a significant increase in sales of nano-fertilizers in 2024-25 as compared with a year ago. In the last financial year, Iffco sold 36.50 million bottles of nano-fertilizers, an increase of 47% as over the 24.89 million bottles sold in the previous financial year. Out of 36.50 million bottles, 26.80 million were of Nano Urea Plus (Liquid) and 9.7 million of Nano DAP (Liquid). This is equivalent to 1.2 million tonnes of conventional Urea and 4.85 tonnes of conventional DAP. Considering the total industry volume of 35.80 million tonnes of conventional urea sold last year, the contribution of nano urea is just 3.36%. In case of DAP the contribution of nano-DAP is 5.04% of the total industry volume of 9.62 million tonnes of conventional DAP last year. "In order to increase penetration, we would increase our outreach activities and marketing campaign including social media," added Awasthi. Meanwhile, Iffco booked profit after tax at 2,823 crore in FY25 as compared with ₹ 2,443 crore in FY24. Revenue rose to ₹ 41,244 crore in FY25 fiscal, from ₹ 39,474 crore in the previous year. Commenting upon future plans, Awasthi added,"We will be also launching Nano NPK fertilizer in granular form. Nano NPK fertilizer is enriched with Magnesium, Sulphur, Zinc and Copper which would help in increasing the crop productivity & would minimize nutrient losses." He further said that Iffco will be also launching Nano Zinc and Nano Copper to fulfil micro-nutrients needs of plants. According to him, by incorporating nanotechnology, drones, and artificial intelligence, Iffco is transforming the agriculture & food value chain across the country. Brazil, Kenya and the US have expressed strong interest to adopt the nanotechnology fertilizers, he said. Iffco has expanded its presence in over 40 countries, with reduced rtilizer usage reported from the US\, Brazil, Slovenia, Mauritius, Zambia, Nepal, and Bangladesh.
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Business Standard
29-05-2025
- Business
- Business Standard
Iffco net profit rose 16% in FY25; nano fertiliser sales up around 47%
Fertiliser major Iffco on Thursday reported a 16 per cent rise in net profit to ₹2,823 crore in 2024-25 (FY25), driven by higher revenue, despite some concern over slow adoption of its nano products portfolio. It had posted a net profit of ₹2,443 crore in the previous year. The company said its flagship nano urea product increased 31 per cent in sales in FY24, while its nano Di-Ammonia Phosphate (DAP) product saw a 118 per cent increase. 'Taken together, nano fertilisers (urea and DAP) have managed to replace 1.2 million tonnes (mt) of conventional urea and 0.48 mt of conventional DAP so far, but it could have been better,' Iffco Managing Director U S Awasthi told reporters after the annual general meeting. India annually consumes around 35-37 mt of urea in conventional granular forms and around 11 mt of DAP. According to Awasthi, the cooperative has retailed nano zinc and nano copper in liquid form and will soon start producing granular nano NPK for use in basal application. In FY25, Iffco exported over 370,000 bottles of nano fertilisers globally and is now working to set up an indigenous nano manufacturing plant in Brazil. Also Read 'Iffco has registered a profit (before tax) of more than ₹3,000 crore for three consecutive financial years,' Sanghani said. The cooperative has rewarded its members with a 20 per cent dividend in the paid-up shares capital, he said. Total domestic fertiliser production climbed to 9.31 mt in FY25 from 8.89 mt in the preceding year, while total sales (including imports) increased slightly to 11.37 million tonnes as against 11.17 million tonnes. Urea and DAP sales remained flat at 6.73 mt and 2.56 mt, respectively, in FY25. Sales of NP, NPK, and other forms of fertilisers were recorded at 4.64 mt in FY25 against 4.39 mt in FY24.
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Business Standard
29-05-2025
- Business
- Business Standard
IFFCO FY25 profit rises 16%, nano fertiliser sales jump nearly 47%
Fertiliser major Iffco on Thursday reported a 16 per cent rise in net profit to ₹2,823 crore in 2024-25 (FY25), driven by higher revenue, despite some concern over slow adoption of its nano products portfolio. It had posted a net profit of ₹2,443 crore in the previous year. The company said its flagship nano urea product increased 31 per cent in sales in FY24, while its nano Di-Ammonia Phosphate (DAP) product saw a 118 per cent increase. 'Taken together, nano fertilisers (urea and DAP) have managed to replace 1.2 million tonnes (mt) of conventional urea and 0.48 mt of conventional DAP so far, but it could have been better,' Iffco Managing Director U S Awasthi told reporters after the annual general meeting. India annually consumes around 35-37 mt of urea in conventional granular forms and around 11 mt of DAP. According to Awasthi, the cooperative has retailed nano zinc and nano copper in liquid form and will soon start producing granular nano NPK for use in basal application. In FY25, Iffco exported over 370,000 bottles of nano fertilisers globally and is now working to set up an indigenous nano manufacturing plant in Brazil. 'Iffco has registered a profit (before tax) of more than ₹3,000 crore for three consecutive financial years,' Sanghani said. The cooperative has rewarded its members with a 20 per cent dividend in the paid-up shares capital, he said. Total domestic fertiliser production climbed to 9.31 mt in FY25 from 8.89 mt in the preceding year, while total sales (including imports) increased slightly to 11.37 million tonnes as against 11.17 million tonnes. Urea and DAP sales remained flat at 6.73 mt and 2.56 mt, respectively, in FY25. Sales of NP, NPK, and other forms of fertilisers were recorded at 4.64 mt in FY25 against 4.39 mt in FY24.
Mint
08-05-2025
- Business
- Mint
Coromandel stock zoomed 88% in a year. Will MSCI entry push it further?
Coromandel International, India's second-largest phosphatic fertilizer company after Iffco, has been quietly stealing the spotlight, delivering a whopping 88% return in the past one year. Though it still trails Paradeep Phosphates' 109% surge in stock price, Coromandel has significantly outperformed its other listed peers. Sumitomo Chemical India shares rose 27%, Zuari Agro Chemicals 18.5%, and Gujarat State Fertilizers & Chemicals, Rallis India, Bayer CropScience , and Dhanuka Agritech declined 20%, 13%, 12%, and 8% respectively. Now, with a possible inclusion in the MSCI Global Standard Index on the horizon, analysts expect the stock to see another leg up. Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research, said Coromandel is a strong contender for the index and its inclusion could trigger passive inflows of around $210 million into the stock. The official announcement is expected on 14 May, with the index rebalancing scheduled for 30 May. As the broader market declined, with the Nifty 50 falling about 9% from October to March, mutual funds that held approximately 17% of Coromandel's total share capital at the end of October saw their stake decrease to 15% by the end of March, according to the Prime Mutual Funds Database. Despite the reduced stake, the market value of their holdings did not change significantly— ₹ 8,734.01 crore in March compared to ₹ 8,345.26 crore in October, the data showed. The Murugappa Group company delivered a blockbuster March quarter. Its consolidated revenue from operations climbed 27% year-on-year to ₹ 4,988 crore. Ebitda shot up 56% to ₹ 426 crore, but the real stunner was the bottomline—profit after tax skyrocketed 253% to ₹ 578 crore. The nutrient segment led Coromandel's performance, posting a 28% year-on-year revenue jump to ₹ 4,321 crore, driven by a healthy 24% uptick in volumes. The crop protection segment wasn't far behind either—raking in ₹ 699 crore in revenue, up 24%—as stronger demand and higher volumes kept the momentum going. Given the strong operational performance and volume growth led by market share gain, Antique Stock Broking has raised its FY26 and FY27 earnings per share estimates for the company by 1% and 6%, respectively. 'The company isn't just riding a wave; it is steering the ship with better earnings visibility and smart capital allocation," said Himanshu Binani, research analyst for agrochemicals & fertilizers at Anand Rathi Institutional Equities. After nailing backward integration, it is now shifting gears toward forward integration, which could open up fresh growth avenues, he added. Forward integration means a company expands by buying or merging with businesses that are closer to the final customer, like distributors or retailers. Backward integration is when a company acquires firms that provide raw materials or basic components it needs to make its products. Binani sees a solid case for earnings upgrades in the coming quarters and feels the stock's premium valuation will hold up, thanks to stronger operational efficiency. Compared to rivals like Paradeep Phosphates—also a player in the non-urea fertilizer space—this company stands out with much better operating performance. Bloomberg data shows that Coromandel's stock is trading at a price to earnings ratio of 33.3 times, notably higher than Paradeep Phosphates' 21.2 times. Also Read: Coromandel bets on backward integration to boost profitability Improved earnings visibility in the core businesses (which is nutrient and crop protection business) coupled with the possible turnaround of the recently acquired NACL Industries Ltd, are seen as key growth drivers for the stock. In mid-March, Coromandel announced its plan to acquire a 53% stake in Hyderabad-based crop protection firm NACL. According to a Nuvama Institutional Equities report dated 2 May, some of NACL's facilities could also support Coromandel's entry into the contract development and manufacturing (CDMO) space. This acquisition could help the company make better use of its planned ₹ 1,000 crore capex for CDMO and specialty chemicals, as NACL already has relevant infrastructure in place. Nuvama estimates the deal could add about 3% to Coromandel's EPS by FY27E. Since CEO S. Sankarasubramanian took charge, analysts note a marked improvement in growth visibility across all business segments. 'These growth plans are likely to improve profitability for all the divisions and up their contribution to the overall profit pool," said Prashant Biyana, vice president, Institutional Equity Research, Elara Securities. While Binani of Anand Rathi sees a meaningful upside potential in the scrip, he cautions that after a good run, the counter could pause for breath or enter a healthy consolidation phase. Also Read: The Tatas of South India deserve your attention, dear investor—here's why The fertilizer industry is heavily regulated in India, with subsidies being a big component of profitability. According to a Crisil report dated 25 March, the phosphatic fertilizer segment has been operating under the nutrient-based subsidy (NBS) regime since 1 April 2010. Under this system, the government sets the subsidy for nutrients for the entire fiscal year (with an option to review this every six months), while the retail prices remain market-driven. So, any material revision in NBS rates and its impact on margin will be a key factor to watch in the medium term. Besides, manufacturers of phosphatic fertilizers rely heavily on imported raw materials like rock phosphate and phosphoric acid–inputs that make up nearly 75% of their operating costs. Because of this, the industry remains vulnerable to fluctuations in global raw material prices, the report highlighted. 'The regulated nature of the industry and susceptibility of complex fertiliser players (including Coromandel) to raw material price volatility under the NBS regime continues to be key rating sensitivity factors," Crisil said. A weak monsoon could dampen demand, making it another key risk to watch out for, analysts said. Disclaimer: The views above are those of individual analysts, experts and broking companies. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
