Gujarat Alkalies, GMDC shares gain after selection of new chairman

Shares of Gujarat Alkalies & Chemicals Ltd and Gujarat Mineral Development Corp Ltd (GMDC) gained on June 21 backed by higher volumes.

Both the companies informed the exchanges that Hasmukh Adhia, a former Union finance secretary and retired civil servant from the Gujarat cadre, was appointed as the chairman. Adhia succeeds Raj Kumar in Gujarat Alkalies and GMDC.

At 9.30am, Gujarat Alkalies was trading at Rs 686 on the BSE, up 1.5 percent from its previous close, while Gujarat Mineral Development gained 4 percent to Rs 167 a share. So far this year, the Gujarat Alkalies stock is down nearly 12 percent. It hit its 52-week high on September 13, 2022 to Rs 969.85 a share and since then it lost over 30 percent.

GMDC stock is up over 10 percent year-to-date while in the last one year it surged 18 percent.

Adhia has a distinguished career serving in various capacities across a wide range of government departments at both the state and central levels. He holds the position of the principal advisor to the chief minister of Gujarat.

He is also the non-executive chairman of Bank of Baroda and serves as the Chancellor of the Central University of Gujarat. He is actively involved in the Indian Institute of Management Bangalore, where he serves as a member of the Board of Governors.

Gujarat Alkalies is the largest producer of caustic soda in India with an installed capacity of 4.12 lakh metric tonnes per year. It reported weaker earnings in the March quarter, while net profit for the quarter dropped 67.8 percent on-year to Rs 71 crore from Rs 221 crore a year back.  Revenue for the quarter was down 0.3 percent YoY to Rs 1,138 crore and the EBITDA margin eroded sharply to 23.8 percent from 30.7 percent on-year.

GMDC is a leading merchant seller and the second largest producer of lignite in India. The company’s standalone net profit for the March quarter surged 108 percent to Rs 451 crore from Rs 217 crore last year. Revenue for the quarter stood at Rs 1,057 crore as against Rs 952 crore last year. For FY23, the company’s net profit stood at Rs 1,212 crore versus Rs 445 crore last year, while revenues for the year stood at Rs 3,502 crore as against Rs 2,732 crore. This is the highest ever annual revenue from operations for the company.