Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) has reported a 61.3 per cent YoY decline in net profit at Rs 130 crore during Q4 FY24 as compared to Rs. 336 crore during the corresponding quarter of the preceding fiscal. The company's revenue from operations dipped 7.1 per cent to Rs. 2,110 crore as against Rs. 2,271 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA tanked 60.7 per cent to Rs. 145 crore in Q4 FY24 over Rs. 369 crore in Q4 FY23.

For the Financial Year ended March 31, 2024, GNFC has posted net profit of Rs. 485 crore as compared to Rs. 1,464 crore in the Financial Year ended March 31, 2023.

Pankaj Joshi, Managing Director, GNFC, said: “The financial performance during Q-4 FY 23-24 witnessed improved revenue attributable to chemical segment which improved by ~13% driven by both increased volume as well as price realisations. This improvement is, to a large extent, offset by decrease in fertilizer segment where volumes are down and in case of complex fertilizer which is not a pass through mechanism, it affected realisations as well as margins as well due to downward revision of subsidy.

“On a Y-o-Y Q-4, chemical segment is strongly affected mainly driven by lower realisations which has pervasive margin shrink effect. Fertilizers segment improved in volume but witnessed erosion in margin as a result of continuously lowering of nutrient based subsidy.

“On a Y-o-Y full year basis, both, the bulk chemicals as well as complex fertilizers have witnessed substantial dents in realisation and margin as the cycle has turned from sellers to buyers’ market. The results for full year is not fully comparable in view of the annual shutdown during the period which limited the availability of saleable volume.”