GACL net dips by 26.4%

Increased supplies of imported caustic soda lye has led to a dip in net profit for third quarter ended December 31, 2014 of Gujarat Alkalies and Chemicals Ltd. (GACL) by 26.4 per cent. The company saw its Q3 net profit reduce of FY '15 to Rs 25.92 crore from Rs 35.22 crore of the corresponding period last year. GACL's total income also fell by 10.37 per cent to Rs 457.13 crore for third quarter ended December 31, 2014 from last year Q3 net profit of Rs 510.02 crore. The company attributed the results mainly due to increase in supplies of imported Caustic Soda Lye which has badly affected the domestic price realization during the quarter. According to the company, increase in imports of Caustic Soda Lye on Western ports has created disturbance in domestic market during the quarter. A M Tiwari, IAS, Managing Director of GACL stated that the net sales for the nine months ended on December 31, 2014 was Rs 1,444.21 crore, registering an an increase of 4.37 per cent as against Rs 1,383.68 crore in the corresponding period of the previous year. Further, the profit after tax for the nine months ended on December 31, 2014 increased by 9.35 per cent to Rs 131.55 crore as compared with Rs 120.30 crore in the corresponding period of the previous year for GACL. Tiwari emphasized that the growth in financials for the nine months could be achieved despite adverse market conditions coupled with increase in various input costs and power cost, among other things. BS Reporter