GSFC rises as Govt to release withheld subsidy

Gujarat State Fertilizers & Chemicals rose 1.70% to Rs 110.95 at 9:48 IST on BSE after the company said the government has agreed to release the withheld subsidy on ammonium sulphate.

The announcement was made at the fag end of the trading session yesterday, 9 July 2018.

Meanwhile, the S&P BSE Sensex was up 200.14 points, or 0.56% to 36,134.86.

On the BSE, 53,000 shares were traded in the counter so far compared with average daily volumes of 1.58 lakh shares in the past two weeks. The stock had hit a high of Rs 111.95 and a low of Rs 110.20 so far during the day. The stock hit a record high of Rs 166.30 on 16 January 2018. The stock hit a 52-week low of Rs 100.20 on 29 June 2018.

Gujarat State Fertilizers & Chemicals (GSFC) announced that the Department of Fertilizers (DoF) in co-ordination with Fertilizer Industry Co-ordination Committee (FICC) had agreed to examine the Company's withheld ammonium sulphate subsidy for the period from 18 March 2013 to 5 March 2017 to decide the eligibility claims based on cost data provided by the company, as reported in financial statements for the year 2016-2017 and 2017-2018.

The Department of Fertilizers, Government of India has agreed to release the subsidy on ammonium sulphate for the period from 18 March 2013 to 5 March 2017. This should help the company in getting subsidy Rs 693 crore held up for the above period.

Net profit of GSFC declined 16.37% to Rs 156.41 crore on 33.30% rise in net sales to Rs 2055.26 crore in Q4 March 2018 over Q4 March 2017.

GSFC is engaged in the development of crop nutrition solutions. The company makes fertilizer products and industrial products. The company is also engaged in the business of trading pesticides, zinc sulphate, single super phosphate, magnesium sulfate and muriate of potash, among others.

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