GNFC’S STRONG PERFORMANCE CONTINUES IN Q1 F.Y. 22

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) gained G3.80% to Rs 369.95 after the company reported multi fold rise in net profit to Rs 240 crore in Q1 FY22 as against Rs 1 crore in Q1 FY21. Net sales rose 99% to ₹ 1,394 crore in Q1 FY22 compared with ₹ 700 crore in Q1 FY21 aided by improved sales volume and buoyant chemical products realizations.

Profit before tax (PBT) soared to ₹ 366 crore in Q1 FY22 from ₹ 2 crore in Q1 FY21. PBT margin rose to 26% in Q1 FY22 from 0.28% in Q1 FY21. EBITDA grew to ₹ 393 crore in Q1 FY22 from ₹ (24) crore in Q1 FY21. EBITDA margin improved to 28% in Q1 FY21 from (3%) in Q1 FY21. The healthy EBITDA along with debt free status reflected in much improved PBT and PAT for the quarter in spite of downtime resulting from planned annual shutdown during Q-1 FY 22. During the year, improved realisation across the board in chemical products has contributed to improved bottom line. Commenting on the performance, Shri Pankaj Joshi, IAS, Managing Director of the company said, "in spite of Second Wave of Pandemic, GNFC has registered improved volumes as well as realizations with support of thriving downstream sector on Y-O-Y basis resulted into and achieved highest ever Q1 PBT of ₹ 366 crore for Q1 FY 22 in the history of GNFC." Fertilizer Segment Results improved from loss of ₹ (15) Crores to Profit of ₹ 4 Crores higher by 124% mainly due to increase in NBS subsidy and favourable concessional rate difference in case of Neem Urea.