GHCL Limited — Results, 08-05-2025: Integrated Filing- Financial

GHCL Limited has announced a board meeting on May 28, 2025, to consider the financial results for the quarter and half-year.

1) **Revenue Performance:**

Consolidated total income declined 6.5% YoY to ₹3,271 Cr in FY25 from ₹3,499 Cr, driven mainly by the Chemicals segment. Revenue from operations also fell to ₹3,183 Cr from ₹3,447 Cr. No specific growth drivers were highlighted.

2) **Profitability and EPS:**

Net profit dropped 21.4% to ₹624 Cr, impacted by higher tax expenses and absence of last year’s exceptional gains. EPS decreased to ₹65.50 from ₹83.43. Margins contracted due to rising raw material and power costs, despite steady volumes.

3) **Operational Costs:**

Raw material costs eased to ₹929 Cr from ₹1,101 Cr but remain a major expense. Power and fuel costs declined to ₹611 Cr from ₹690 Cr. Employee expenses inched up slightly to ₹114 Cr, while other expenses increased to ₹529 Cr. The company made some progress on cost rationalization but margin pressure persists.

4) **Key Metrics:**

Depreciation rose to ₹112 Cr, reflecting increased asset base, while finance costs dropped to ₹16 Cr from ₹25 Cr, supporting profitability.

5) **Balance Sheet / Cash Flow Health:**

Gross debt declined to ₹97 Cr, and cash reserves nearly doubled to ₹99 Cr, strengthening liquidity. Capex surged to ₹315 Cr from ₹107 Cr, signaling ongoing capacity expansion. Operating cash flow remained healthy at ₹638 Cr.

6) **Management Commentary / Strategic Outlook:**

A dividend of ₹12 per share has been proposed, showing confidence in cash generation and shareholder returns. Mining lease and legal matters are under review but are not expected to impact operations materially. Focus remains on low-cost mining and operational efficiency.

**Final Takeaway:**

GHCL faces margin headwinds from inflationary input costs, yet strong cash flow, deleveraging, and robust liquidity underpin financial stability. Management’s substantial capex and dividend plans reflect a balanced approach to growth and value creation. Retail investors should monitor margin improvement and mining lease developments for future growth clarity.