RCF board gives nod to ₹515 crore contract for ammonia plant revamp; stock hits 52-week high

As per the company’s notification to the stock exchanges, the contract would comprise procuring a basic engineering design package (BEDP), supply of proprietary equipment, and catalysts indicated for the revamp of the ammonia plant at RCF Thal.

The project is being carried out to reduce specific energy consumption at the plant.

The period awarded for the said contract with the international entity M/s Topsoe A/s is set at 36 months, and the size of the project stands at ₹5,14,55,58,959.03.

Shares of Rashtriya Chemicals and Fertilizers were trading higher in the afternoon session, up 1.84% at ₹226.60 at 3:22 pm. The shares closed 2.63% higher at ₹228.36.

For the financial year ended March 31, 2024, the public sector undertaking (PSU) witnessed a 20.6% year-on-year (YoY) decline in total income at ₹17,146.74 crore from ₹21,594.84 crore reported last year.

The company’s net profit for the financial year 2024 slipped sharply by nearly 77% to ₹225.28 versus ₹966.31 crore in the previous fiscal. Its total expenses also dipped 17.3% on-year to ₹16,883.43 crore in the year under review from ₹20,414.33 crore in FY23.

Rashtriya Chemicals & Fertilizers, a government-owned enterprise, is a prominent fertiliser producer in India. Its product range includes industrial and fertiliser products along with soil testing services to diagnose soil health and provide solutions for specific crops.