Gujarat Narmada Valley Fertilizers & Chemicals announced Q1FY24 results:
- Q1FY24 vs Q4FY23:
- Operating revenue of Rs 1,652 crore in Q1FY24 compared to Rs 2,271 crore in Q4FY23
- Total revenue of Rs 1,740 crore in Q1FY24 compared to Rs 2,394 crore in Q4FY23
- Operating EBITDA at Rs 105 crore in Q1FY24 compared to Rs 369 crore in Q4FY23
- EBITDA margin of 6% in Q1FY24 compared to 16% in Q4FY23, 28%
- PBT of Rs 116 crore in Q1FY24 compared to Rs 417 crore in Q4FY23
- PAT of Rs 85 crore compared to Rs 334 crore in Q4FY23
- Q1FY24 vs Q1FY23:
- Operating revenue of Rs 1,652 crore in Q1FY24 compared to Rs 2,696 crore in Q1FY23
- Total revenue of Rs 1,740 crore in Q1FY24 compared to Rs 2,772 crore in Q1FY23
- Operating EBITDA at Rs 105 crore in Q1FY24 compared to Rs 763 crore in Q1FY23
- EBITDA margin of 6% in Q1FY24 compared to 28% in Q1FY23
- PBT of Rs 116 crore in Q1FY24 compared to Rs 761 crore in Q1FY23
- PAT of Rs 85 crore compared to Rs 569 crore in Q1FY23
Pankaj Joshi, IAS, Managing Director, GNFC stated, "The Q1FY24 witnessed planned annual turn around due to which, both, volume as well as financial performance is not comparable.
The annual turnaround, apart from volumes, normally also witnesses higher maintenance costs and unproductive costs which have affected net margins.
Apart from shutdown-related impacts, the output prices have softened disproportionately than input prices which have weighed on financial results.
The chemical industry, in general, has been witnessing this phenomenon, both, domestically in India as well as globally.
Many companies in the industry have announced significant operating revenue as well as margin drop even when full-blown annual turnaround is not taken in the current reporting quarter citing key reasons like lower realizations, higher input costs, low demand, etc. GNFC faced less of a demand issue given the limited volumes available due to the shutdown.
I am happy to inform you that, on the chemical side, in July 2023, the company commenced the operation of its brownfield CNA-IV with an annual production capacity of 50,000 MT. This should augur well for the company.
On the fertilizer side, the company launched Nano Urea under the Narmada brand in June 2023."