Gujarat Narmada Valley Fertilizers & Chemicals consolidated net profit declines 32.48% in the December 2019 quarter
On a consolidated basis, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) net profit dropped 32.5% to Rs 113.49 crore in Q3 December 2019 (Q3 FY20) as against Rs 168.09 crore reported in Q3 December 2018 (Q3 FY19).
Net sales rose 4.8% year-on-year (Y-o-Y) to Rs 1,277.66 crore in Q3 FY20. Profit before tax (PBT) jumped 51.9% to Rs 133.90 crore Y-o-Y. The Q3 earning numbers were announced after trading hours yesterday, 11 February 2020.
During the quarter, the Department of Telecommunications (DoT), Ministry of Communications, Government of India, Gujarat Telecom Circle, Ahmedabad, issued a demand notice of Rs 15,019.97 crore (inclusive of interest and penalty), towards license fee in respect of 'Very Small Aperture Terminal (V-SAT) License' and 'Category A - Internet Service Provider (ISP) License' from FY 2005-06 to FY 2018-19.
The Demand Notice has been issued by DoT in view of the Supreme Court of India's (SC) judgement on Adjusted Gross Revenue (AGR) in the matter relating to Telecom operators (TSPs) whereby the SC concluded that income under different heads of revenue/inflow fall within the definition of AGR and thus license fee is leviable on all revenue/inflow.
GNFC is engaged in operating businesses in the industrial chemicals, fertilizers and information technology (IT) products space. The firm is engaged in manufacturing and selling various fertilizers, such as urea and ammonium nitro-phosphate under the Narmada brand. The company's segments include fertilizers, chemicals and others, which includes the activities of the IT division.
Shares of GNFC rose 2.24% to Rs 193.95. The scrip hovered in the range of Rs 202.55 to Rs 192.60 so far.
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