Gujarat Narmada Valley Fertilizers and Chemicals Limited — PPTs, 13-11-2024: Investor Presentation

**Financial Highlights:** In H1 FY 2024-25, operating revenue increased 6% to ₹3,938 Cr, driven by higher volumes across most products following a maintenance shutdown during the same period last year. However, PBT fell by 18% to ₹292 Cr due to rising input costs, despite improved cash flow from urea subsidies.

**Strategic Initiatives and Growth Drivers:** GNFC is actively pursuing energy norm revisions for urea production and has initiated a brownfield capacity expansion for weak nitric acid at 2 LMT per annum. Plans for a coal-based power plant at the Dahej complex are on track, with the facility fully operational since October 2024.

**Business Developments:** The company maintains its profitable stance in chemicals despite margin pressures. Fertilizer sales showed improvement as the market rebounds, particularly for neem urea, though the chemical segment faced realizations and volume challenges from annual maintenance.

**Market Position and Competitive Advantage:** GNFC holds a unique position as India's sole producer of oil-based ammonia and toluene di-isocyanate. Additionally, it is the largest producer of formic acid and a top player in aniline production.

**Investor Implications:** While input cost pressures and lower realizations in chemicals pose challenges, steady subsidy inflows and operational improvements provide a positive outlook for revenue growth moving forward. Watch closely as the expansion projects materialize, potentially enhancing GNFC's market position.