Gujarat State Fertilisers and Chemicals Q2 net profit jumps to Rs 2.24 bn

Gujarat State Fertilisers and Chemicals (GSFC) Friday posted almost a three-fold jump in standalone net profit to Rs 2.24 billion for the September quarter 2018-19, on strong sales.

The state-run company had clocked a net profit of Rs 792.3 million in the same quarter of the previous financial year.

Net sales rose sharply to Rs 26.71 billion during the reported quarter from Rs 15.40 billion in the year-ago period, as per a BSE filing.

Expenses also remained higher at Rs 24.04 billion as against Rs 14.81 billion in the said period.

"The company has shown a huge improvement in fertiliser sales volume on improved market reach and leveraging its marketing network," GSFC Managing Director Sujit Gulati said.

With focus on selling more NPK fertilisers, the company is targeting niche market fetching higher margins. It is also gearing up for selling more sulphur-based fertilisers because there is deficiency of this soil nutrient in most parts of the country, he said.

New products like sulphur WDG, magnesium sulphate, bentonite sulphur and city compost were introduced in the product basket during the quarter, he added.

GSFC -- set up in 1962 in Vadodara, Gujarat -- is a leading producer of fertilisers and bulk industrial chemicals in the country.