Moving against the tide, Gujarat State Fertilizer & Chemicals Limited has put up a stellar performance in the latest quarterly results announced recently.
In Q2, the company's net profit grew 177% YoY and reached Rs.172.75 crores as against Rs.62.27 crores in the same period a year ago.
“The prominent factors that led to sound second quarter results of GSFC are the massive reduction in average finished goods inventory by Rs 747 crore. Also, due to efficient cash management, there was a reduction in bank borrowings by Rs 908 crore as as compared to the start of this financial year. There was a focused thrust on exports of industrial products and the company also implemented initiatives in import substitution under ‘Aatmanirbhar Bharat’,” said Arvind Agarwal, CMD, GSFC.
The fertilizer sales volume grew by 10% YoY in H1 of FY20-21 as compared to H1 of FY 19-20, whereas the Profit Before Tax grew from Rs. 63 crore to Rs. 216 crore, while the Profit After Tax grew from Rs. 56 crore to Rs.171 crore in Q2 Vs Q2.
The fertilizer sales volume grew by 10% in H1 of FY20-21 as FY20-21 as compared to H1 of FY19-20, whereas the profit before tax grew from Rs 63 crore to Rs 216 crore in the period under review. The company saw a recovery in sales as compared to quarter ended June 20 on the back of robust kharif demand in Q2.
There was a substantial improvement in the EPS as it grew from Rs. 1.40 per share to Rs. 4.29 per share as compared to same quarter last year.
GSFC stopped purchasing finished fertilizers, except Urea (imported by Gol) and MoP (where there is no option but to import). Reduction in raw materials consumption expenditure, despite increase in sales by 10% YoY in volume in H1 Vs H1 and lower price of natural gas and a more efficient management of resources have also played a major part in GSFC’s financial results.
In Industrial products, For the first time, export markets were successfully explored. Melamine was exported in large quantity to USA and 8 EU countries and Caprolactum in large quantity to China.
Gujarat State Fertilizers & Chemicals Limited was formed in 1962, with the vision to manufacture fertilizers in response to the shortfall of agri inputs in Gujarat. By continually adhering to dedicated customer-centric policies, GSFC has become a pioneer in the industry. It is the first company to manufacture DAP, Caprolactam and Melamine in India. And today, with the same ideals and values, it has become the first company to manufacture Calcium Nitrate and Boronated Calcium Nitrate. GSFC’s list of firsts keeps on growing due to its innovative R&D work which has placed it firmly on the path of the Self-reliant India Mission.
