RCF jumps 8% on awarding L&T a major order of ₹1,000 crore for setting up new fertiliser plant

Rashtriya Chemicals and Fertilizers’ (RCF) Board has accorded its approval for the placement of a purchase order on Larsen & Toubro (L&T) for setting up of 1200 MTPD (DAP basis) Complex Fertilizer plant on LSTK Basis at RCF, ThaI, worth Rs 1000.27 crore (excluding GST). The plant is expected to be completed in stipulated time period of 27 months.

“We hereby inform you that the Board of Directors of the Company, at its meeting held today, i.e., October 9, 2024, has given its approval for the Placement of Purchase Order on MIs. Larsen & Toubro Ltd for setting up the 1200 MTPD (DAP basis) Complex Fertilizer plant ” the company said through an exchange filing on Tuesday.

In Q1FY25, the company witnessed an 8.73% growth in revenue at ₹4396 crore for the quarter ended June 2024 as compared to ₹4042.9 crore during the year-ago period. However, a big drop of -84.21% was reported in the net profit for the quarter ended June 2024 to ₹10.7 crore from ₹67.9 crore. The Operating Profit of the company decreased to ₹146 crore from ₹161 crore.

RCF, a Government of India Undertaking, is a leading fertiliser and chemical manufacturing company. About 75% of its equity is held by the Government of India. In August 2023, the company was awarded Navratna status, becoming the first company in the fertiliser sector to achieve this status.

The share price of RCF traded at ₹183 apiece, up 7% on the NSE. The company's shares have delivered impressive 49% returns on an annual basis, whereas they are up at a modest gain of 9% on a YTD basis in 2024.