Gujarat Narmada Valley Fertilizers and Chemicals Limited — Important, 13-11-2024: Financial Result Updates

Operating revenue for the quarter and half-year ended September 30, 2024, stands at ₹1,917 crore and ₹3,938 crore, respectively, reflecting a decrease in revenue compared to the previous quarter due to slower chemical sales attributed to annual maintenance at the TDI Dahej plant. Total revenue also decreased to ₹2,040 crore for the quarter and ₹4,160 crore for the half-year, compared to ₹2,120 crore and ₹3,972 crore, respectively, in the previous corresponding periods.

Net profit after tax for the quarter fell to ₹102 crore from ₹115 crore in the preceding quarter and ₹178 crore year-over-year. The earnings per share (EPS) are reported at ₹6.94 for the quarter. Operating EBITDA for the quarter is down to ₹90 crore, resulting in an EBITDA margin of 5%, which indicates resilience in the face of external challenges.

Operational costs are mainly driven by input stability, with coal prices being an exception. The company's careful cost management and effective product mix have helped mitigate some adverse market conditions but highlight challenges in profitability within the chemicals segment due to pricing pressures.

The balance sheet indicates a solid net worth of ₹8,254 crore and total liabilities amounting to ₹9,162 crore, showing a stable financial position. Cash flow from operating activities yielded ₹311 crore, supporting operational liquidity amid an investing cash outflow of ₹163 crore focused on capital expenditures.

Looking forward, the resumption of full capacity at the Dahej complex is expected to improve performance in subsequent quarters. Overall, the company presents a mixed but cautiously optimistic outlook in the face of sector pressures, indicating a potential buy strategy given its robust asset base and operational recovery capacity.