Ladies and gentlemen, good day and welcome to the Chambal Fertilisers and Chemicals earnings conference call. As a reminder, all participant lines will be in 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 an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishab Barar from CDR India. Thank you, and over to you, sir.
Good day, everyone, and thank you for joining us on the Chambal Fertilisers and Chemicals Q4 and FY2025 earnings call. We have with us today Mr. Abhay Baijal, Managing Director; Mr. Anuj Jain, CFO; Mr. Tareeb Barat, Vice President, Legal and Company Secretary; and Mr. Ashish Srivastava, Vice President, Sales and Marketing. Before we get started, I would like to point out that some statements made or discussed in the conference call today may be forward-looking in nature and must be viewed in conjunction with the risks the company faces. Chambal Fertilisers and Chemicals does not undertake to update them. The statement in this regard is available for reference in the presentation. We will begin this call with opening remarks from Mr. Baijal. I would now like to invite Mr. Baijal to share his views. Over to you, sir.
Thank you very much, Rishabh. Good day to everybody, and a warm welcome to all of you participating in this call. To quickly recap our numbers for the quarter under review, on a standalone basis, revenues amounted to INR 2,449 crore. The company achieved a profit after tax of INR 100 crore, as against INR 86 crore, which is a growth of about 16%. For the full year, the company achieved an EBITDA of INR 2,838 crore, against INR 2,428 crore, which is a growth of about 17%, and a PAT of INR 1,657 crore, as against INR 1,331 crore, translating into a growth of 24%. Two of our plants underwent shutdowns: Gadepan 3 for about 36 days, and there was a mini shutdown of 14 days in Gadepan 1 due to a problem in one of the boilers. Despite this, the company has performed well.
We have achieved higher production as compared to the corresponding quarter. For the full year also, urea production volumes continued to be strong at 3.461 million metric tons, compared to 3.383 million metric tons last year. Urea sales for the year amounted at 3.471 million metric tons, against 3.256 million metric tons in the previous year. We have run both Gadepan 1 and 2 efficiently. The advantages accruing out of the energy saving schemes continue to flow in. We continuously monitor the efficiency and plan to implement further energy efficiency projects to reduce it further. Subsidy receipts continue to be timely. As of March 31, 2025, our subsidy outstanding was INR 2.65 billion, and we are glad to inform you that a large portion of this amount has been received on time. We continue to see volume and sales growth in our CPCSN business.
In quarter four FY2025, CPCSN revenues stood at INR 39 crore, as against INR 15 crore last year. Contribution at INR 15 crore was higher by about INR 7 crore. This took our total contribution for the business to INR 247 crore, against INR 175 crore, and our revenues to INR 926 crore, against INR 760 crore. We have achieved a compounded CAGR of 25% in CPCSN business, and we hope to carry this momentum forward as well. During the year, we introduced 12 new CPC products, primarily comprising of weedicides. Today, our CPC product portfolio comprises 64 products of distinct chemistries, covering fungicides, weedicides, and insecticides, which have been well accepted by farmers across India and our territory. We are also working on 18 new products, which shall be introduced in Kharif and Rabi. Our strategy continues to focus on creating partnerships and alliances for introducing better chemistries and increasing the width of offerings in our channel.
During FY 2025, we also achieved an 8% revenue from biologicals of the total CPCSN revenue. We continue to strengthen our biological portfolio. Biological fungicide and biological nematicide will be introduced in Kharif 2025 and Rabi 2025, respectively, to address farmers' pain points for nematodes and disease control, for which internal field tests have been successful. Chambal Fertilisers and Chemicals is now focusing increasingly on technologies which bring benefits in terms of improving farm yields, improved soil health, and provide better product outcomes. As we know, friends, during the year, Chambal Fertilisers and Chemicals and The Energy and Resources Institute entered into an agreement for research for advanced and sustainable agricultural solutions. This is significant in the backdrop of food security challenges due to increasing population. We are delighted by the successful launch of Pronam BioNano Phosphorus liquid fertilizer, an advanced solution designed to enhance phosphorus availability in crops.
TERI, as you know, is a pioneer institution in the area and will be doing research under the Centre of Excellence to develop new products, whereas IP rights are jointly owned between CFCL and TERI, and Chambal will have exclusive commercial rights globally on the products which are developed over a period of the next five years. We will be introducing hybrid and research variety seeds in Kharif 2025, which will substantially complete the agri-input products profile. In the non-urea space, our product portfolio approach continues. We have sourced adequate volumes of NPK fertilisers, ensuring preparedness for the Kharif season. We are in active discussions with global suppliers to ensure the smooth supply of NPK fertilisers across the year. Our Farmer Connect C2 Harvest program is now growing. Our C2 Harvest program is playing a significant role towards strengthening and expanding our relationships with both the farmer and our channel partners.
During the year, Chambal conducted over 9,000 meetings, 11,825 demos, and collected 105 lakh soil samples. The program is being scaled up with digital intervention in newer locations of Kharif 2025. Our Technical Ammonium Nitrate is progressing in line with stated timelines. Statutory approvals are in place. Until date, we have spent about INR 650 crore. Our joint venture in IMACID is also performing well with higher production and better margins. IMACID, as you know, is increasing its phosphoric acid capacity from about 500,000 metric tons to 700,000 metric tons, and this should be available in the timeframe of 2027. With that, we are now happy to take your questions. Thank you so much.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jignesh Khamani from Nippon AMC. Please go ahead.
Yeah, hi team. Just want to understand on the DAP import. Last year, because of the lower subsidy, import was not viable, you can say. How is the, based on the current subsidy, how is the scenario on DAP import? In the past, we used to do, you can say, close to around 8-10 kind of DAP trading. What kind of possibility can we do? Can we go back to that level, you can say, in one to two years because of the better subsidy?
Yeah, if I get you right, Jignesh, I think what you're asking is what our stance on DAP imports is likely to be for Kharif and Rabi. I would say that the government has made suitable adjustments and has gone to a kind of cost-plus mode. We are also participating. Almost 1 lakh and 30,000 tons has been contracted to date, which includes volumes of TSP as well. For going forward, I think, should this policy continue, we have no hesitation in increasing volumes in this area, subject, of course, to various geopolitical uncertainties. The facts of the case are that we are in a little uncertain situation today. Nevertheless, we feel that we will be able to surpass our volumes of last year.
Understood. It will impact the NPK volume because the industry has witnessed very healthy growth in the NPK, partly because of the lower availability of DAP. Now, if DAP availability improves, will it impact the NPK?
Not really. There are grades which are very specific to certain crops where there does not make much difference, especially high-potash grades. There are other grades which are direct substitutes of DAP. Yes, clear to that point, there will be a difference. There are grades which are sulphur, which are in a category of their own. They are priced competitive. They are priced competitively as compared to DAP. They will themselves sell. You know what I am meaning? 20-20-0-13 is a grade that I am trying to mention here. So there are various shades in this whole game, and one has to play the gaps and supply gaps and availability gaps in order to make money here.
Understood. Last one, the urea, how is the general inventory considering that because of plant shutdown, you can say our volume has been down by close to around 5% on our level. Have we reduced the general inventory? How is the scenario?
I think we carry more or less the same inventory as last year. What it really means is that we could have done better had Gadepan plant shutdown of 14 days, inadvertent, not happened. That is part and parcel of the game of running these high-tech plants. Sometimes things do happen. We are back on stream and full blast from April 1st. That is what I would like to respond on the urea question.
Sure. Thanks a lot, Jignesh. All the best.
Thank you. The next question is from the line of Vedant Serda from Nirmal Bank Securities. Please go ahead.
Hello?
Yes, sir. You're audible.
Am I audible?
Yes, sir.
My question is, we are operating at 99% of the urea capacity. What would be our growth drivers for the next two to three years? Any capacity expansion plans in the urea segment, or when would our technical ammonium nitrate project be in operations?
See, there is always a chance to improve capacities through various projects, which we continuously keep examining. There is a pipeline of such energy efficiency projects which also have knock-on benefits in terms of volume increases because sometimes these projects technically also give margins in machines. As you know, from previous year to this year, we have actually increased almost 1 lakh tons per annum, which is 34 lakh tons kind of average. We are going to 35 lakh tons kind of average. It can increase further. That is one part. As far as Technical Ammonium Nitrate is concerned, as you know, our commercial operation or production date is somewhere in January 2026. That should kick in in terms of revenues by the third or fourth quarter of this year.
As far as other products and projects are concerned, I think I had made a mention last time that we are looking at various other options which I'm not at liberty to disclose. Those are making steady progress as we speak.
Okay.
Sir, does that answer your question? Mr. Vedant? Due to no response from the current participant, we will move on to the next participant. The next question is from the line of Harmish Desai from Phillip Capital. Please go ahead.
Good morning, and thanks for taking my question. Is my voice audible?
Yes, Mr. Desai.
Yeah. Thank you. Sir, in FY 2025, apart from the TAN CapEx, what are the total CapEx apart from TAN?
I think it is of the order of about INR 3.00 billion.
Okay. Sir, what is the total CapEx that we can expect in FY 2026?
That is what I was telling. See, we have almost the total CapEx in 2025-2026 will be of the order of INR 1200 crore .
Got it, sir. Got it. Sir, we are commissioning our TAN plant in January 2026. In FY27, how fast and to what capacity can we be able to ramp up this new TAN plant?
We all hope for the best. Why would you not? We would expect it to go to at least 80%-90%. As far as our financial planning is concerned, we are more conservative.
Got it. Got it, sir. Sir, can you help me with the urea volume numbers in Gadepan 1, 2, and 3 for Q4?
Mr. Jain can answer that question.
Yeah. For Gadepan 1, we have 2.4 lakh tons. Gadepan 2, we have 2.57 lakh tons. Gadepan 3, 2.11 lakh tons, 11 lakh tons.
Got it. That is helpful, sir. And sir, what was the gas price for fourth quarter?
Gas price for fourth quarter is around $15.55 NCV. I mean, if I remember clearly, NCV.
Got it. Sir, lastly, how much ammonia have we sold in the fourth quarter or in FY 2025 as a whole?
I think we sold about 1.03 lakh tons.
This is fourth quarter? Sorry, this is FY25, right?
For the FY25.
Yeah. Got it. Got it. That is all from my side. Thank you.
Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Institutional Equities. Please go ahead.
Thank you and good morning. If you look at your performance in crop protection, what is the driver for the improved margins? Can you share what is the EBITDA margin you are given in the gross margin? What will be the EBITDA margin percentage term? What will drive this 23% in revenue between FY2025 and FY2027? Will it be predominantly the new products? How do you see that?
See, I think we have over the years established efficient purchase and sale mechanism which continues to give us, so far, the margin. Our alliances also help with that. Our direct discussions with various companies who are providing us either the technical or the know-how, or then we are getting it made from various formulators and all that. That is one part as far as the margin is concerned. The second part on margin is the freshness of the products, how many new products that we introduce, whether it is in weedicides, herbicides, fungicides, and so on. There is a strategy working out there in terms of how we place and procure these materials. So far, in the last three years, or any indication, these have been steady, and we are proposing to also repeat this performance in FY2026. This continues to work for us.
I think in the last time when we had this discussion, we had made the point that being the bridge between the farmer's pain point and a solution, which we actively pursue and do a lot of research on, I think is the secret sauce that we are looking for.
If you look at the fourth quarter, in terms of this crop protection revenue growth, how much of that will be volume growth? Because other companies are talking about some pricing pressure. What is it in your case? How much is it driven by volume growth?
It's mostly driven by volume growth, and there are some past catch-ups also in this. Mr. Ashish can answer this question more fully.
Yeah. Usually, the question is right. Whatever crops consume crop protection chemicals in quarter four, basically sugarcane. This is basically volume growth and not much of price issues in that.
Okay. So if you look at your fertilizer trading portfolio, you have seen healthy growth in NPK and DAP. Do you expect to continue this trend? What is the kind of growth you would expect in the trading portfolio in DAP and NPK next year?
See, we did about 5.5 lakh tons, plus or minus, in the whole year FY2025, primarily split between MOP, DAP, TSP, and NPKs. My guesswork is that this year we will have a much larger portfolio of NPK, possibly doubling it or going 250% on that. MOP could be the same or slightly subdued. DAP will grow, as I mentioned to the first participant. Given the government's policy, we have no hesitation in stepping in and doing our part, plus the fact that our channel would expect that kind of support from them. I will not hazard a guess, but I think we are well covered in terms of Kharif. Almost the amount that we did last year, we will do in Kharif itself.
Okay. So just going back to crop protection, what is the on-ground pre-placement demand you are seeing for Kharif given that the summer crop acreage has shown healthy growth? How do you see that?
Whatever forecast, if you're looking at whether it's IMD or SkyMet, we are expecting a normal monsoon again. Whatever inventory pressures there in the competition of past years, those have also gone out. We expect a robust growth in the CPCU segment overall.
Thank you very much. I shall join the queue. Thank you.
Thank you.
Thank you. The next question is from the line of Tarang Agrawal from Oldbridge Capital Management. Please go ahead.
Good morning, sir. Good morning, team. Congratulations on an extremely strong performance, especially in the crop protection business. I have a couple of questions pertaining to crop protection. One, sir, you spoke about 64 products being active in the portfolio today. These are 64 SKUs, or these are 64 unique products? Second, I mean, just to get a better handle, how would, I mean, if you could give us a sense on commutative intensity in your portfolio, I mean, are there alternates available for a large part of your portfolio or not available? Just wanted to get a sense on how unique the portfolio is. That is one. Second, further to the earlier participant, how confident are you to be able to maintain the financial metrics of the trading business apart from growth? I mean, everything else going forward in FY2026.
I'll take the second question first. As far as the financial metrics for trading are concerned, we are pretty confident that having procured strategically and tactically in the first quarter, we are sitting at competitive price levels, I would say, which creates the necessary margin for us. That is number one. Going forward, of course, the market is shifting. It has tightened in terms of prices. As we said, we are more or less stocked for Kharif. Going forward, we'd like to see how this plays out in the international market. There are geopolitical issues, but there could be entrants such as China into the market once again. That could soften up the general levels because the displacement of stock from one place in the globe to the other place of the globe also has knock-on effects.
Now, as far as the first part of your question is concerned, the 64 SKUs are actually products. There are 64 products as split between weedicides, fungicides, and herbicides, etc. These exactly are the result of our cultivating various alliances and relationships, whereby, as I told you, I think last time, we are getting superior products than what the market normally gets in this kind of a business. We have those alliances whereby people are giving us Generation 1 or Generation 1.5X, so we get a competitive advantage. The sourcing strategy is a very, very important part in this business. We do work over a period of at least eight, nine months prior to the business plan to understand what we will need, how do we source it, what alliances do we need.
We create those kind of contacts with people and get that material in time. This has been going on now for the last three or four years. I'm pretty confident this is a workable proposition in this business.
Sir, and the uniqueness of the portfolio?
Could you repeat that question, please?
I mean, how unique is the portfolio? For instance, some of these products like Novgras and Manconil seem to be fairly generic and not so unique, right? If I look at something like a Hiroi or a Theo or a Vimo, just wanted to get your sense on how unique are these. I mean, are there alternatives available? Because then we'll probably get a better handle on what's actually driving the metrics of this business.
Okay. These are 70% of Indian crop protection chemical businesses through generics. Only 30% are patent or niche products. When you talked about the product uniqueness, we, as Mr. Baijal mentioned, because of our relationship, now we are getting some of the products in the year of launch. We do not have to wait for two or three years for the product to be launched, and then you are getting it. We are getting, so that is the uniqueness. We get some products in the year of launch. Secondly, depending on the soil type and farmer spending behavior, you always have to keep a portfolio. I will put one small example. Say for stem borer and leaf folder segment, I sell Ranexipar Chemistry, I sell Cartap Hydrochloride, I sell Fipronil. They are in different price banks for different soil types.
That is there with almost all companies. We also do a similar market.
Got it. Got it. And sir, Mr. Baijal, just last question. I mean, from a capital allocation, you've laid out about INR 1,300 crore of outlay. And there are capital projects under consideration. But purely from a size standpoint, what could be the ticket size of the projects that are under evaluation currently?
I won't hazard a guess, but I mean, they are not small projects. That's all I can say.
Sure, sir. Thank you and all the best, and congratulations on a very strong FY 2026.
Thank you, sir.
25. Yeah.
Thank you. The next question is from the line of CA Ashok Jain, who is an individual investor. Please go ahead.
Yeah. Good morning, Baijal Sahib and the team. I am CA Ashok Jain from Mumbai. My questions are basically from, if you refer page number 18, that is consolidated segment-wise revenue. If I see there, I find that the complex fertilizer for the quarter four, the revenue is INR 166 crore, and profit is only INR 9 crore. Last quarter, also, the profit was very low in this segment. I see there the stock, I mean, there is one item which says segment asset, which is complex fertilizer. It has gone from 31 December 2024 from INR 825 crore to INR 1,601 crore. My question is that in this segment, I mean, we are not making profit, and instead, we are adding the asset. It is, I mean, we must be incurring really opportunity financial cost.
This is what my question is, how to tackle this and what is this? One is this. Second, I want to know that if I see quarter four, our revenue from our own manufactured fertilizer is INR 2,243 crore, and profit is only INR 79 crore, which is 3.4%, against the last quarter where it is 17%. Can you just clarify these two issues, how to handle it, especially complex fertilizer is becoming complex for me?
Okay. Mr. Jain, let me just make it clear. We had actually built up the stock, and we have purchased. Tactically, I think I have made this mention. When you purchase tactically, and you will report the segment asset, naturally, the value of stock will get in. This is not a manufactured item. There is no plant and machinery in this. From last year to this year, there has been an increase in stock. That will flow in terms of benefits when we make the sales in the Kharif season. That is one part. As far as the INR 80,000,000 and INR 90,000,000 that you mentioned, that is dependent on the sales that must have been done. In this last quarter, we would have hardly sold 50,000 tons or something like that.
That kind of number is possible in small sales that are there. Now, let's come to the sales of own manufactured fertilizers and the reduction in margin. See, this follows from the policy principle beyond reassessed capacity. When you actually produce beyond reassessed capacity in the policy, the profit metrics are quite different. They also depend upon the debit of various types of expenses, such as repair maintenance, which are more heavy in this particular quarter because, as I told you, Gadepan 3 had a shutdown, and there was an annual turnaround. There is a debit of large amount of repair maintenance. That is one thing. Secondly, there was also a 14-day shutdown of Gadepan 1, and a startup expense and shutdown expense also gets debited. These are the reasons why you find the large variation in the margins.
Okay. So can we make it more rational, something like that? Is it possible in future going forward because it is quite low from 17% to 3.4% seems very low?
This is the nature of accounting in the last quarter. That is, you recognize the cost and revenue as it is for the period. That is the way it's done for the last, I think, God knows how many years. Since I've been in this company and other companies of this type, they all do this type of accounting.
Okay. Sir, one last question. The CapEx plan, you are saying that 2025, 2026, it will be around INR 1,200 crore. So my question is this, how are we going to source it from the internal, I mean, accrual?
Yes. We will do it from internal accruals.
Okay. Thank you, sir. Thank you. Thank you.
Thank you. The next question is from the line of Viksanth from DB Wealth. Please go ahead.
Hello, sir. Congratulations on a strong set for this financial year. Sir, you have alluded to how China can become a risk factor for us in the short to medium term. Could you give us a little bit more color and explain to us how this risk can be seen?
No, it is. I'm just saying that China, from being a very steady supplier of P&K fertilizers and even urea to some extent, has now become an off-and-on kind of party for the last three years. For whatever reasons, they are internal. They may be diverting some part of their phosphoric acid capacity into battery manufacturers for electric vehicles. They could be doing it for geopolitical reasons, whatever it is. The fact is, the global supply from China is now fluctuating to some extent against being a steadier player in the last three to four years. That means that for certain types of P&K products, we have to shift in terms of sourcing to other geographies, which is, let us say, Morocco or Saudi Arabia or Jordan or Russia or even the US, for instance. The dynamics keep changing.
I am confident that overall, the supply situation in the world is steady. Although, because of the geographical intensity of where the rock or the raw material is found, there are kind of monopolies that get created. That creates problems in terms of how the trade plays out. As compared to, for instance, urea or ammonia, which is much, much more kind of open and many suppliers being there, it evens out the competitive situation and you get better negotiation capability. That is what it is. That is what I meant in terms of how this will play out. Nevertheless, I think the government and the trade and industry in India have been working assiduously to create backward linkages or to create long-term MOUs with various other countries. Overall, the supply in the world is more or less the same.
From somewhere or the other, you will get the material.
It's really reassuring to know that we have more sources to get this. Does this come at an operating margin cost to us or even part-level cost to us? I'm assuming that China would be more competitive than others. Since we are on a trajectory of improving margins right now, what kind of margin guidance can you give us or just any ballpark number of improving margins that we see?
Yeah. I won't hazard a guess on margins. Margins are dependent on how you have strategically bought. It is a kind of position-taking sometimes in this business. If you have taken a correct position for a particular margin, you will be looking very healthy next year. You could have made the mistake of having bought early in a falling market or having bought late in a rising market. Those things are your judgmental call, 60%-70%. How good your judgment is makes the difference. Obviously, Chambal has a very strong balance sheet. Its carry cost is low. It can take positions if it wants. That is also dependent on a less turbulent policy regime.
If you know that in the P&K sector, in the past, there has been a lot of turbulence in the policy and discontinuities, which have prevented people or companies like us, for instance, in Chambal, not to take long bets in the market. That is the reason why you have seen volumes having shrunk to some extent. As the policy now starts to open and get rationalized, the volumes will spring back.
That's clear, sir. Out of this INR 1,600 crore of CapEx that we are doing, what kind of revenues can we see just adding up on the top line in FY 2026? Even, let's say, full calendar year because we are starting from January. What kind of, how could the four quarters be if INR 1,600 crore of CapEx has been done?
First of all, our calendar year, I mean, our financial year starts from April, not January.
We can look at that.
The first quarter was from April to March 26, which is about INR 1,250 crore. Most of it is getting into the TAN project, almost INR 900 crore, if I'm not wrong. And INR 300 crore is routine capital expenditure, which is for replacement and for renewal and reliability. Those are the type of products which are, of course, those types of projects also have some knock-on benefits here and there in terms of either small margin expansions or increase in capacity because reliability increases. You are able to run, the number of days increases. Those kind of things also happen. From the point of view of certain changes, these plants are highly complex and require equipment changes over a period of 15-20 years. That is factored into this type of capital expenditure that we are doing.
The benefits that will flow, as I said, are first of all in the TAN project. Obviously, once the project gets commissioned, it will try and achieve, we'll try and achieve capacity utilization and EBITDA, etc., will flow from that. That is first of all. Secondly, in terms of those replacement capital expenditures or where small margin improvements or, I think, reliability will improve the capacities or something to that effect. Those are the things that you can expect in 2025-2026 and 2026-2027.
Just trying to get a number on what kind of revenues and EBITDAs can we see once this TAN project is getting commissioned and is being utilized to the appropriate utilization?
You see, TAN project is given as 240,000 tons of capacity. You can do the math that currently, I think, the product sells at between INR 35,000-40,000 a ton, given various types of scenarios that you can taste. You can do the multiple of that. That is on full capacity. What is the number? What is it at 70%, 80%? You can take a guess being the first year of operations.
What could be our operating margins on this, sir? Any ballpark number?
That you can benchmark with the industry out.
Sure. Thank you so much, sir. This is very reassuring to know. Thank you, sir.
Thank you. The next question is from.
Of course.
Yes, sir. Thank you. The next question is from the line of Sophia Mazda from Elana Securities. Please go ahead.
Hi. Thank you so much for the opportunity. Oh, I just wanted to know where does our net debt stand as of 31 March, net debt or cash?
I'm not wrong. We are actually net debt is negative.
Okay. Okay. Thank you so much.
Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Limited. Please go ahead.
Hi. Thanks for taking my question.
Sorry to interrupt, sir. I would request you to please use your handset.
Am I audible, sir?
Yes, sir. I would request you to be a little louder. Thank you.
Okay. So thanks for taking my question. Sir, what is the ammonia sales number in the total sales?
I think I mentioned 1.03 lakh metric tons. I would say we would have sold between INR 40,000-INR 45,000 a ton.
Okay, sir. Okay. Thank you, sir.
Thank you. The next question is from the line of Chandragupta, who is an individual investor. Please go ahead.
Hello. Am I audible?
Yes, sir.
Yes.
Yeah. Okay. Thanks. Thanks for this opportunity. Jeff, I just have one question. Recently, there was a news report about India, the government giving rights for potash mining in Rajasthan. Would we be interested in these kind of projects? Your thoughts on this?
Mr. Chandragupta, first of all, if the mine is adequately, the seam is rich, I would say. What my understanding is that there are small pockets of the potash, and it may require beneficiation to get it to the right quantity because when you sell potash in the market as straight potash, it has to be almost 60% KCl. My understanding is that this is not of that grade. How low it is or how high it is, we will have to check. My initial inquiries showed me that it is a lower-grade material, which will require quite a bit of beneficiation. One has to also examine the economics vis-à-vis import or other suppliers. Traditionally, you have got potash in the region of $220-$350 per ton.
One has to do the math to understand from a mining point of view what will be the cost of making this potash available from these sort of low-grade seams or quality or whatever the quality of the mine is. It is more to do with how you allocate capital in what kind of areas and with what kind of returns expected.
Okay. So we haven't shown any interest in this area. Thanks a lot. That's all from my side.
Thank you. The next question is from the line of Manish Mahaval from Antique Stockbroking. Please go ahead.
Yes, sir. In terms of, I believe government is thinking to, I think, increase the fixed cost reimbursement to the urea players, right? Just wanted to know your thoughts and how the discussions.
This is a working process. I can't say what's going to happen.
Okay. Historically, sir, when has this fixed cost been increased for the urea as an industry?
The last time it was done, this exercise was done, whether increase or decrease, I don't know, was done in 2002 and 2003. There was, in 2014, roughly INR 350 per ton kind of ad hoc increase given to all people in the industry. I don't know where they are on this matter, but there are discussions happening, and there are a lot of differing points of view on this issue.
Okay.
It is a work in progress. As and when we come to know, we will keep you informed.
Yep. Sure, sir. Secondly, sir, in terms of your crop protection business, right, what we did was INR 900 crore per top line. Is it possible to share the number geography-wise, maybe north, south, east, west to understand how our penetration or distribution is strong?
We are selling in all parts of the region.
Okay. But any bifurcation in terms of which part is stronger or is still?
See, you see wherever we have our presence by way of fertilizer sale or wherever our locations are. You know that we have got almost 28-29 locations. We are in UP, we are in Rajasthan, we are in Punjab, we are in Gujarat, we are in Maharashtra, we are in Bihar, we are in West Bengal, we are in Telangana, Andhra Pradesh, Chhattisgarh, everywhere. Little or more, this is a product which is a priority for us, and it's doing well, as you see. In various areas, various crops, various types of molecules, they also have to be product-market fit is there. It is a little involved subject to just tell you on this phone call.
Okay. Secondly, sir, on the crop production business, any basically the intent to go ahead with the export as a market, as I know, right, export needs our plant or manufacturing to go ahead with. Any intent in the future?
You see, I'll tell you what. This is a perennial question which people keep asking me, whether export, production, or formulation by ourselves. We have looked at various opportunities in the past. I would not say that we have not. Most of the time, when you do the math in terms of acquisition cost versus the return that you will expect, the returns come out to be lower than what we would be doing in this mode itself. There is a big dichotomy or a dissonance in our mind as to go about as to how to do this. That does not mean that we do not look at opportunities. Sometimes you might find a very reasonable asset, and an offer could be made and accepted. I'm never ruling out that possibility.
Okay. Understood. Last one, sir, in terms of your JV partner, right, basically the profitability has significantly improved this year. Can it be possible to share the production number of your JV or maybe this profitability improved on account of better spread?
I think they did about 4,000, 90,000 tons, close to that. I would suggest Mr. Jain to give you a brief ballpark number on that, where they are in this.
See, they did about 5.25 lakh ton of production and about 4.35 lakh ton of sales.
Okay. Sir, can it be possible to share the last year number, please?
Last year, it was about 4.35 lakh ton of production and about 3.8 lakh ton of sales.
Okay. Understood, sir. That is from my side, sir, and all the best.
Thank you so much.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Thank you very much, ladies and gentlemen, for your participation in this call. We hope that we have been able to satisfy your queries. In case there is any further requirement of any further information, you can reach out to us. Thank you so much.
Thank you.
Thank you.
Thank you. On behalf of Chambal Fertilisers and Chemicals, that concludes this conference. Thank you for joining us, and you may now disconnect your line.