Soda ash maker GHCL reports 51% decline in Q2 net profit at Rs 143 cr

Leading soda ash maker GHCL Ltd on Tuesday reported a decline of 51.45 per cent in its consolidated net profit to Rs 142.84 crore in the second quarter ended September 2023.

It had reported a net profit of Rs 294.25 crore in the July-September quarter a year ago, according to a regulatory filing from GHCL.

Its revenue from operation was down 31.53 per cent to Rs 805.42 crore during the quarter, in comparison to Rs 1,176.37 crore a year ago.

Total expenses in the September quarter were at Rs 625.19 crore, down 22 per cent.

"Our performance during the quarter was influenced by several factors like continued weakness in the global soda ash markets resulting in oversupply situation, increased imports in India and reduction in energy and associated costs," said R S Jalan, managing director of GHCL.

While the global markets continue to remain soft, GHCL is beginning to observe early signs of demand recovery in domestic market especially in the conventional end-user sectors, he said.

"This is in addition to the emerging demand arising from the new sunrise industries of solar glass, lithium and sodium bicarbonate," said Jalan.

Shares of GHCL Ltd on Tuesday settled at Rs 556.90 on BSE, down 1.86 per cent from the previous close.