Gujarat Narmada Q4 PAT slides 62% to Rs 127 cr; declares dividend of Rs 16.50 / share

Gujarat Narmada Valley Fertilizers & Chemicals reported a 61.97% decline in its consolidated net profit to Rs 127 crore on 7.08% fall in revenue from operations to Rs 2,110 crore in Q4 FY24 over Q4 FY23.

Profit before tax fell 58.99% to Rs 171 crore in the fourth quarter of FY24.

Total expenses rose 3.54% YoY to Rs 2,047 crore in Q4 FY24. Cost of raw materials consumed was at Rs 1,173 crore (up 14.32% YoY) and employee benefit expenses came in at Rs 167 crore (up 1.21% YoY) during the quarter.

On the segmental front, the revenue from fertilizers climbed 14.16% YoY to Rs 790 crore in Q4 FY24.

The revenue from chemicals segment de-grew 17.44% to Rs 1,287 crore in the fourth quarter, the performance is lower in chemical segment mainly due to steep lower sales realization and lower volume partially compensated by decrease in input cost. The volume loss is due to annual turn around during the year which started around the last week of previous financial year.

Operating EBITDA declined 60.70% to Rs 145 crore in Q4FY24 as compared to Rs 369 crore recorded in Q4 FY23. EBITDA margin contracted to 7% in the Q4 FY24 from 17% recorded in the corresponding period last year.

In outlook front, the company stated that from an operating stand point of improved volumes availability and the fact that realisations are at their bottom side, we look forward to gradual change in current cycle.

For the full year, the companys consolidated net profit tumbled 66.23% to Rs 497 crore on 22.46% fall in revenue from operations to Rs 7,930 crore in FY24 over FY23.

Pankaj Joshi, IAS, managing director, GNFC, said, On a Y-o-Y Q-4, chemical segment is strongly affected mainly driven by lower realisations which has pervasive margin shrink effect. Fertilizers segment improved in volume but witnessed erosion in margin as a result of continuously lowering of nutrient based subsidy.

On a Y-o-Y full year basis, both, the bulk chemicals as well as complex fertilizers have witnessed substantial dents in realisation and margin as the cycle has turned from sellers to buyers market. The results for full year is not fully comparable in view of the annual shutdown during the period which limited the availability of saleable volume.

During the current financial year, Dahej operations of TDI has been stable with increased volume which has improved the operating results. It achieved highest ever production of ~53 TMT against the plants rated capacity of 50 TMT.

The Concentrated Nitric Acid (CNA-IV) plant which became operational during the year achieved ~90% capacity utilisation in its first year of operation.

Meanwhile, the board declared a dividend of Rs 16.50 for the financial year ended 2024. The dividend declared will be paid within 30 days.

GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals (GSFC). GNFC has extended its profile beyond fertilizers through a process of horizontal integration. Chemicals/petrochemicals, energy sector, electronics/ telecommunications and information technology form its corporate portfolio.

The scrip fell 0.80% to currently trade at Rs 665.10 on the BSE.

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