GSFC Q3 net profit dips 21%

Gujarat State Fertilisers and Chemicals (GSFC) today posted 21% fall in net profit at Rs 136.49 crore in its third quarter ended December 31.

Its net profit stood at Rs 172.35 crore in the same period last fiscal, the company said in a filing to the Bombay Stock Exchange (BSE).

Net sales of the company rose, however, to Rs 1,720.43 crore during the October-December quarter of the 2012-13 fiscal, from Rs 1,300.02 crore in the same period last fiscal.

Profit took a beating as the company's expenses escalated during the quarter under the review. Total expenses increased to Rs 1,533.43 crore during third quarter of this fiscal, as against Rs 1,072.85 crore in the year-ago.

On acquisitions, GSFC said it has committed to invest up to 60 million Canadian dollar (about Rs 333 crore) to acquire nearly 20% stake in Canada-based Karnalyte Resources.

"The company has executed definitive agreements and committed a strategic investment up to Canadian dollar 60 million in Karnalyte Resources Inc in Canada to secure long term supply of potash," GSFC said.

With this deal, GSFC has also secured an assured long term supply of potash to India, which imports almost its entire domestic requirement of about 5-6 million tonnes.

Apart for production and marketing of urea and other fertilisers, Vadodara-based GSFC is also into petrochemicals, chemicals, industrial gases, plastics and fibers.

The company scrip closed slightly up at Rs 64.90 on the BSE platform today.