Gujarat State Fertilizers & Chemicals Limited — Important, 12-11-2024: Updates

Gujarat State Fertilizers & Chemicals Limited (GSFC) reported a mixed performance for Q2 FY 24-25. Operating revenue for Q2 decreased by 13% year-on-year to Rs 1,556 Cr, while total revenue fell to Rs 2,775 Cr from Rs 3,212 Cr in the previous year. Despite volume declines attributed to lower DAP and Urea sales, the company achieved a record Q2 Profit After Tax (PAT) of Rs 303 Cr, up from Rs 285 Cr a year earlier, with operating EBITDA improving to Rs 289 Cr.

The company enhanced capacity utilization and product mix, with fertilizer production rising by 16%. GSFC's strategic growth plans include multiple ongoing projects such as a 15 MW Solar Power Project and a revamp of Urea-II. The demand outlook remains positive, driven by increased minimum support prices for key crops, although challenges from high input costs and fluctuating subsidy rates are anticipated. With commercial production starting in the HX Crystal Plant, GSFC is well-positioned for future growth, targeted with sales of 5.0 lakh MT in Q3.