GNFC Q4 posts 38% rise in profit, declares 75% dividend

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has reported a 38 per cent rise in its net profit at Rs 329 crore for the fourth quarter ended March 2018.

The Gujarat government-promoted firm had posted a net profit of Rs 238 crore in the same quarter of 2016-17, GNFC said in a statement.

Total income of the company from operations increased 34 per cent to Rs 1,764 crore during January-March quarter of 2017-18, compared with Rs 1,314 crore in the previous year.

The board of the company has recommended highest-ever dividend of 75 per cent, it said, adding that a shareholder would get Rs 7.50 per share of Rs 10 each for the year ended March 31.

GNFC Managing Director Rajiv Kumar Gupta mentioned that this performance of the company is the best ever in its 42 years history.

"With improved financial performance, long-term debt has been fully paid off as of that by making the prepayment of Rs 534 crore. These measures reduced the finance cost of the company by 51 per cent on annual basis," he said.

The growth in revenue and profits are significantly led by non-TDI chemicals, both in terms of revenue and profits, he said.

For the full fiscal 2017-18, the company registered a 51 per cent growth in net profit at Rs 790 crore as compared to Rs 521 crore in the previous fiscal.

The total full year income increased from Rs 4,945 crore for the year ended March 2017 to Rs 5,917 crore for the year ended March 2018, it said.