The company’s Q4FY20 EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins improved 378bps year-on-year (YoY) to 13.6 per cent on the back of 401bps improvement in the Nutrient segment’s EBIT margins.
“The company generated robust operating cash flow of Rs 1,870 crore in FY20 (Rs 510 crore in FY19) on the back of a shift in the mix away from Urea, and 15-day reduction in inventory due to a strong season,” analysts at Emkay Global Financial Services said.
EID Parry (India), meanwhile, surged 7 per cent to Rs 236.90 on the BSE in the intra-day trade today. The stock was quoting close to its 52-week high level of Rs 245.35, touched on February 2, 2020. In the past one month, it has zoomed 56 per cent as compared 8 per cent rise in the S&P BSE Sensex.
On June 2, 2020, EID Parry had sold 5.85 million equity shares, representing 2 per cent stake, in its subsidiary, Coromandel International at Rs 629.19 per share aggregating to a value of Rs 368 crore. The company said proceeds from the sale will be utilised towards reduction of debt.
The company reported a healthy 30 per cent YoY jump in consolidated EBITDA at Rs 639 crore for Q4FY20, as against Rs 490 crore in the corresponding quarter of the previous fiscal. EBITDA margin improved to 15.05 per cent from 13.44 per cent during the quarter.