Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) has reported a significant decline in its financial performance for the first quarter of the fiscal year 2024. The company's consolidated net profit dropped by 30% to ₹83.00 crore, down from ₹118.00 crore in the corresponding quarter of the previous year.

Financial Highlights

The company's total income for the quarter decreased to ₹1,751.00 crore from ₹2,120.00 crore year-on-year, marking a 17.40% decline. Both major business segments of GNFC witnessed revenue contractions, with fertilizer revenues falling to ₹577.00 crore from ₹701.00 crore, and chemical revenues dropping to ₹1,005.00 crore from ₹1,304.00 crore.

Factors Affecting Performance

The Managing Director of GNFC attributed the decline in financial performance to several factors:

1. Lower Volume Availability: This affected both the fertilizer and chemical segments.
2. Tough Market Conditions: Products like Aniline and TDI faced challenging market conditions, impacting realizations.
3. Shutdown Effects: Operating results were influenced by shutdown activities.
4. Urea Segment Challenges: Higher energy costs compared to allowable energy led to widened losses in the urea segment.
5. Chemical Margin Erosion: Some chemicals experienced margin erosion due to lower realizations.

Board Approval for Director Re-appointment

In a separate development, the board of GNFC has approved the re-appointment of Bhadresh Mehta as an Independent Non-Executive Director. The proposed term is for three years, from September 2025 to September 2028, subject to shareholder approval.

GNFC faces challenges in both its fertilizer and chemical businesses. The company will need to navigate through the current market conditions and operational challenges to improve its performance in the coming quarters.

Gujarat State Fertilizers & Chemicals Limited (GSFC) has taken a significant step in its leadership transition, as the company's Nomination and Remuneration Committee approved the appointment of Shri Sanjeev Kumar as Managing Director. This development comes as part of the ongoing changes in the company's management structure.

Key Developments

• The Nomination and Remuneration Committee met on August 5, 2025, to approve Shri Sanjeev Kumar's appointment as Managing Director.
• Shri Sanjeev Kumar's Director Identification Number (DIN) is 03600655.
• The committee has recommended the appointment for Board approval, signaling the next step in the process.
• GSFC had previously disclosed details regarding management changes on August 1, 2025.

Corporate Governance Process

The appointment process follows the regulatory requirements set by the Securities and Exchange Board of India (SEBI). As per the LODR data:

• The company has adhered to Regulation 30(2) read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• GSFC has also complied with SEBI circular SEBI/HO/CFD/POD2/CIR/P/0155 dated November 11, 2024, regarding disclosures of management changes.

Next Steps

While the Nomination and Remuneration Committee has approved the appointment, the final decision rests with the Board of Directors. Shareholders and market observers will be keenly watching for the Board's decision on this significant leadership change.

The company's commitment to transparency is evident in its prompt disclosure of this development to both the BSE Limited and the National Stock Exchange of India Ltd., where GSFC's shares are listed.

As Gujarat State Fertilizers & Chemicals Limited moves forward with this potential leadership transition, stakeholders will be interested to see how Shri Sanjeev Kumar's appointment, if approved by the Board, might influence the company's strategic direction and operational performance in the coming years.