GSFC, GNFC, GACL register rise in net profits for Q1 FY 2011-12.
Three of the Gujarat government promoted companies have made a profitable first quarter of the current fiscal with two leading fertiliser majors, Gujarat State Fertilisers and Chemicals Ltd (GSFC) and Gujarat Narmada Valley Fertilisers Company Ltd (GNFC) registering healthy profits against the corresponding period last year. Soda ash maker, Gujarat Alkalies and Chemicals Limited (GACL) has posted
Gujarat State Fertilisers and Chemicals Ltd (GSFC) has posted net profit of Rs 142 crore for the first quarter ended June 2011, up by 31 per cent from Rs 109 crore registered in the corresponding period last year.Meanwhile, GACL's net profits jumped to Rs 46.40 crore for the first quarter of the current fiscal from Rs 19.01 crore registered last year, showing a steep rise of 144 per cent on year-on-year basis.
Another fertilisers major, GNFC has reported a net profit of Rs 41.65 crore for the quarter ended June 30, 2011 against a net loss of Rs 22.67 crore in the year-ago period.
GNFC's net sales for the first quarter rose by 75 per cent to Rs 644.21 crore as against Rs 367.81 crore in the corresponding period in the last fiscal. GACL has registered 27 per cent growth in the net sales from Rs 326.8 crore in Q1 2010-11 to Rs 418.05 crore for Q1 2011-12.
In a statement issued on Thursday, GSFC informed that the net profit for the quarter was the highest ever so far by the company in any financial year. The company witnessed constraint in availability of imported phosphoric acid at its Sikka unit, which affected production and availability of DAP during the quarter under review.
Return to profitability hinges on its ability to secure higher proportion of low-cost domestic coal and lower interest costs