GHCL Q4 revenue dips 26% to ₹840 crore, board recommends ₹12 per share dividend

GHCL on Tuesday announced a 26% year-on-year (YoY) fall in its fourth-quarter revenue at ₹840 crore. This downturn primarily stemmed from the decreased realisation of soda ash prices due to heightened imports into India.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 46% to ₹201 crore, largely attributed to lower realisation. The net profit from continued operations dropped 50% to ₹125 crore.

During the fiscal year 2024 (FY24), revenue declined by 24% to ₹3,498 crore while EBITDA fell by 41% to ₹899 crore. The net profit from continued operations fell by 27% to ₹793 crore. The board has also recommended a dividend of ₹12 per share.

RS Jalan, Managing Director at GHCL said fiscal year 2024 has been challenging for the industry due to multiple global headwinds which affected the overall consumption patterns. “Our performance during the year was influenced by weak realisation trends caused by the significant import of soda ash in the country from Turkey, the US, and Russia. Higher imports into India were triggered by the continued weak demand environment in the European region. This led to a domestic demand-supply mismatch and exerted pressure on realisation and margins. That being said, we are watchful of the situation and demand trend at various end-use sectors,” he said.

GHCL specialises in the manufacturing of soda ash (anhydrous sodium carbonate), a crucial raw material utilised in detergents and glass industries, as well as sodium bicarbonate (baking soda). GHCL also pointed out it demerged its spinning business into a distinct entity known as GHCL Textiles.

Shares of the company have lost over 19% since the beginning of the year. The stock has fallen nearly 0.3% in the last one year.