Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) standalone net profit rose 108.24% to Rs 643.26 crore on 59.93% jump in net sales to Rs 2771.71 crore in Q4 March 2022 over Q4 March 2021.

 

On a standalone basis, profit before tax (PBT) rose 94% year-on-year to Rs 871 crore in Q4 March 2022. EBITDA rose 88% YoY and 31% QoQ to Rs 886 crore in Q4 FY22. During the quarter, total expenses rose 47.18% to Rs 1,961.01 crore. 

 

Pankaj Joshi, Managing Director, GNFC while elaborating on the operating and financial performance said, “It gives me an immense sense of satisfaction to announce that FY 21-22 has been the year of unprecedented revenue and profits where the company has delivered ever highest annual Revenue and Profits in its history of 46 years.

 

On YoY basis, the operational revenue at Rs 8,642 of FY 21-22 is 69% higher and PBT at Rs 2,298 is 142% higher than those of corresponding period of FY 20-21.

 

The operational revenue at Rs 8,642 is historical highest since the inception of the company and marks 46% improvement over its previous highest ever revenue recorded in FY 17-18. Similarly, the PBT at Rs 2,298 is also the historical highest and marks 98% improvement over its previous recorded PBT in FY 17-18.

 

Optimisation of profitable product mixes, prudent ‘make or buy’ decisions for captive products, profitable sale of captive products, products pricings discipline are some of the main reasons behind this excellent operational and financial performance even while navigating headwinds of steep input cost pressures. This is possible mainly due to competitiveness especially of Industrial Chemicals. Industrial Chemicals business did extremely well, where some of the chemicals like weak nitric acid, concentrated nitric acid, ammonium nitrate melt, acetic acid etc fared quite well. Production and sales of Ethyl Acetate, Ammonium Nitrate and Nitro Benzene have been highest. Weak Nitric Acid and Methyl Format also recorded highest ever sales volume.

 

On fertilizer front, there has been a commendable Government of India (GoI) support in releasing timely subsidy in spite of spiralling natural gas prices and other input costs by increasing the extra budget allocations. The gas pool price has increased by more than 110% from March'21 to March' 22. On a weighted average basis, the yearly gas pool price has increased by around 80% YoY i.e. FY 21-22 V/s FY 20-21.

 

GoI’s additional support of continuing the mixed fertilizer subsidy has been a big relief to industry. GoI has also revised the freight subsidy rates from year 2016-17 to 2020-21. All these measures bode well for fertilizers.

 

The production of mixed fertilizer i.e. Ammonium Nitro Phosphate has been lower due to requirement of catering to national priority of enhancing the Ammonium Nitrate Melt production for energy security. Once the situation gets normalised this is expected to start production by this month."

 

- In recent past, capacities of TDI and Formic Acid have been added at Dahej and Bharuch production complex respectively. TDI capacity is enhanced by around 10,000 MTPA through debottlenecking project whereas formic acid capacity is enhanced by around 6,800 MTPA through a brownfield project.

- During FY 22-23, Concentrated Nitric Acid plant with a capacity of 50,000 MTPA and 4 MW Solar Power Plant, both, are expected to be commissioned by third quarter.

- Progress is going on the identified and already approved projects like that of enhancing ammonia capacity by 50,000 MTPA, Weak Nitric Acid capacity by 2,00,000 MTPA and Ammonium Nitrate Melt by around 1,50,000 MTPA. The total capex size is around Rs 1,350 Crores.

- Other capex proposals for further foray into Green Hydrogen with renewal power capacities apart from other chemicals are at examination stage. Estimated capex on account of these projects is around Rs 2,900 Crores.