GSFC Q4 PAT falls 89% to ₹24.43 crore, operating revenue dips 18%

Gujarat State Fertilizers & Chemicals (GSFC) on Tuesday reported an 89% year-on-year (YoY) fall in its fourth-quarter net profit at ₹24.43 crore. Shares of the company were trading lower by 8% on Wednesday afternoon.

Revenue from operations fell 18% YoY to ₹1,965 crore during the quarter while total revenue declined 16% to ₹2,017 crore.

For the fiscal year 2024, revenue from operations fell 19.5% to ₹9,155 crore while total revenue declined 17% to ₹9,532 crore. Net profit fell 55% to ₹564 crore during the year.

"FY23-24 was a challenging year for the company due to external headwinds in both fertilisers and industrial products segments. The company registered sales de-growth of 21% and EBITDA de-growth of 51% YoY. Fertiliser segment top-line and bottom-line were dampened by steep downwards revision in subsidy rates," the company said in a statement.

Fertilizer sales decreased by ₹2,158 crore (25%) in value terms despite an increase by 1.08 lakh MT (6%) in volume terms, the company said. While raw materials prices softened as compared to the same period last year, it was exceeded by the decrease in subsidy rates, thus squeezing fertilisers EBIT margins from 17% to 5%, it said.

On the industrial products front, lower sales realisation of major products squeezed the top line by 8% YoY.

"With high net worth proportion in the overall balance sheet size and long-term debt-free position, the company has a strong financial position to fund its capex plans and wither future shock," the firm stated.

The board of directors has declared a final dividend of ₹4 per equity share.

GSFC said the country may witness above-normal rainfall which may brighten the prospects for the fertiliser industry in Kharif 2024. However, nutrient-based subsidy (NBS) rates for Kharif 2024 announced in March are broadly non-remunerative for the industry, it said.

Shares of the company have lost over 18% since the beginning of the year. The stock has gained over 34% in the last one year.