Gujarat State Fertilizers & Chemicals

Gujarat State Fertilizers and Chemicals Limited reported quarterly results with revenue growing marginally by 1% year-on-year to Rs 2,184 crores. Profit Before Tax rose 63% to Rs 184 crores while Profit After Tax increased 59% to Rs 139 crores compared to Rs 87 crores in the same quarter last year. The fertilizer segment delivered strong EBIT of Rs 137 crores, up from Rs 86 crores, supported by robust trading volumes in NPK and higher manufactured APS and AS sales. However, fertilizer production reduced by approximately 10% due to urea plant revamping project. The industrial products segment turned profitable with Rs 25 crores EBIT, aided by improved ammonia realization and HX crystals. Raw material costs remained mixed with natural gas and ammonia prices softening while phosphoric acid and sulphuric acid costs increased sharply. The company commissioned three major projects during the quarter including a 15 MW solar power project and urea energy revamp facilities. Management expects fertilizer volumes of 23-24 lakh tons for the full year and anticipates government subsidy revision from October 1st due to rising input costs.