Nagarjuna Fertilizers and Chemicals Limited (NFCL), incorporated in 2006, is the flagship company of the Nagarjuna Group. It is a leading manufacturer and supplier of plant nutrients in India, holding ISO 9001:2000 certification. NFCL represents the single largest private sector investment in Southern India. The company offers a diverse range of products and services, including nutrition solutions, micro-irrigation solutions, specialist services, and total project management. NFCL operates through three strategic business units, catering to the critical needs of the agricultural sector.
Nagarjuna Fertilizers & Chemicals Limited was formerly incorporated as 'Kakinada Fertilizers Limited' on November 7, 2006. Kakinada Fertilizers Limited was established as a wholly-owned subsidiary to the erstwhile Company (NFCL) in 2009-10 for manufacturing and marketing fertilizers and allied agri-inputs. Through a Composite Scheme of Arrangement and Amalgamation, KFL acquired the residual business of the erstwhile NFCL and the business of Ikisan Limited, effective from April 01, 2011. Consequently, KFL changed its name to Nagarjuna Fertilizers and Chemicals Limited effective August 19, 2011.
NFCL's operations are structured into three key business units:
1. Straight Nutrition Business: Focuses on core fertilizer products.
2. Nutrition Solutions Business: Offers a broader range of plant nutrients and farm management services.
3. Nagarjuna Management Services: Provides specialist services and total project management for chemical process plants.
Product Offerings Include:
- Manufactured Products: Urea (46% N) in Prilled and Anhydrous Ammonia forms.
- Marketed Products: Diammonium Phosphate (DAP - 18-46-0), Muriate of Potash (MOP - Potassium Chloride), and Chelated Zinc (Zn-EDTA).
- Trading: Urea (Government Pool Urea), Specialty Fertilizers, and Agri-Inputs (MOP, DAP, NPK, etc.).
- Other Businesses: Micro-irrigation solutions and PVC pipe manufacturing.
As the flagship company of the Nagarjuna Group, NFCL is a prominent manufacturer and supplier of plant nutrients in India. Its significant private sector investment in Southern India underscores its strategic importance. The company is well-positioned to serve the growing agricultural sector by providing a comprehensive array of fertilizer products and specialized agricultural services.
- Market Capitalisation: ₹373 Crore _(as of recent data)_
- 52-Week High: ₹12.75
- 52-Week Low: ₹4.10
- Exchange Listing: Traded on both NSE and BSE, ensuring liquidity for investors.
June 2024 Quarter Performance:
- Net Profit: ₹2453.20 Crore (compared to a net loss of ₹805.45 Crore in June 2023 quarter)
- Sales: ₹871.08 Crore (a decline of 18.87% from ₹1073.63 Crore in June 2023 quarter)
Full Year Performance (Year Ended March):
- FY2024-25: Net Profit of ₹2424.87 Crore (compared to a net loss of ₹1283.99 Crore in FY2023-24)
- FY2024-25: Sales of ₹872.01 Crore (a decline of 81.70% from ₹4765.39 Crore in FY2023-24)
- Revenue (Annual): ₹703 Crore _(Note: This appears to be an older or consolidated figure; FY2024-25 sales were ₹872.01 Cr)_
- Profit (Annual): ₹2,425 Cr _(Corresponds to FY2024-25)_
- Profit Growth (CAGR over last 5 years): 48.7% _(Indicates strong profit growth, albeit from a potentially low base or after recovery)_
- Sales Growth (over past five years): -16.2% _(Indicates a decline in core sales revenue)_
- Promoter Holding: Decreased to 52.01% as of Mar 2025 from 56.11% as of Jun 2024. Investors should monitor this trend.
- Contingent Liabilities: The company has contingent liabilities amounting to ₹639 Crore.
- Promoter Pledging: Promoters have pledged or encumbered 37.4% of their holding, which warrants careful observation.
- Debtor Days: Have increased significantly from 60.9 days to 123 days, indicating potential issues with collections.
- High Non-Operating Income: Non-operating income constitutes 105.49% of PBT. This reliance on non-business activities suggests a potentially unsustainable core business model. The non-operating income has shown an increasing trend, reaching ₹2,608.60 Crore in the last five quarters.
Overall Assessment:
Nagarjuna Fertilizers & Chemicals operates in the essential agricultural inputs sector. While it has demonstrated a strong profit recovery in recent quarters, investors must carefully evaluate the sustainability of its earnings. The high dependence on non-operating income and the declining trend in core business sales are significant factors to consider.
