GNFC slips 3% on weak March quarter performance; check details here

GNFC shares fall: Shares of Gujarat Narmada Valley Fertilisers & Chemicals Ltd (GNFC) fell as much as 3.49 per cent to hit an intraday low of Rs 647 per share, on Wednesday. 

The fall came after GNFC delivered a weak March quarter (Q4FY24) results. The State-owned company’s profit fell over 61 per cent on a year-on-year (Y-o-Y) basis to Rs 130 crore in the March quarter of financial year 2024 (Q4FY24, from Rs 336 crore in the same quarter a year ago (Q4FY23).

GNFC’s revenue from operations slipped a little over 7 per cent to Rs 2,110 crore in Q4FY24, as opposed to Rs 2,271 crore a year ago (Q4FY23).

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, plunged 60.7 per cent annually to Rs 145 crore in the March quarter of FY24, from Rs 369 crore in the March quarter of FY23. 

Ebitda margin, meanwhile, plummeted 940 basis points (bps) on a year-on-year basis to 6.9 per cent in Q4FY24, from 16.3 per cent in Q4FY23.

GNFC’s board of directors have recommended a dividend of Rs 16.50 per equity share for the financial year ended March 31, 2024, subject to approval of shareholders at the ensuing AGM. “The dividend, if approved by the shareholders at the AGM, will be paid within 30 days of declaration, subject to deduction of tax at source,” GNFC said in an exchange filing.

Pankaj Joshi, IAS, Managing Director, GNFC, said, "On a year-on-year Q4, the chemical segment is strongly affected mainly driven by lower realisations which have pervasive margin shrink effect. The fertilisers segment improved in volume but witnessed erosion in the margin as a result of continuously lowering of nutrient-based subsidy."

“The financial performance during Q4FY24 witnessed improved revenue attributable to the chemical segment which improved by ~13 per cent driven by both increased volume as well as price realisations. This improvement is, to a large extent, offset by decrease in fertiliser segment where volumes are down and in case of complex fertiliser which is not a pass through mechanism, it affected realisations as well as margins as well due to downward revision of subsidy,” said Pankaj Joshi, managing director of GNFC.

At 1:35 PM, shares of GNFC were trading 0.09 per cent lower at Rs 669.85 per share. In comparison, S&P BSE Sensex was down 0.54 per cent at 74,760.87 levels.