Gujarat State Fertilizers slips 4% after June quarter net profit slumps 67.47%

Shares of Gujarat State Fertilizers & Chemicals Ltd (GSFC) slipped 4 percent to Rs 149.80 at 9:45am on August 9 after company reported over 67 percent slump in June quarter net profit.

The company’s quarterly net profit came in at Rs 112.46 crore in June 2023, down 67.47 percent from Rs 345.81 crore last year.

The Vadodara-based chemicals and fertilisers manufacturer reported a revenue of Rs 2,062.9 crore for the period under review, down 31.6 percent from Rs 3,018 crore a year back.

On the operating front, its earnings before interest, taxes, depreciation and amortization (EBITDA) plunged 72.9 percent to Rs 142.4 crore, while margins slumped to 6.9 percent from 17.4 percent.

The basic earnings per share (EPS) from continuing operations stood at Rs 2.82 as compared to Rs 8.68 in the previous fiscal, while its diluted earnings per share from continuing operations stood at Rs 2.82 in Q1 FY24 as against Rs 8.68 a year ago.

Gujarat State Fertilizers & Chemicals is a public sector company promoted by the Government of Gujarat. It is engaged in manufacturing of various fertilizers and industrial products like plastics and synthetic rubbers and man-made fibers.

On August 9, in contrast to GSFC, overall fertilizers sector and the stocks were up despite the market falling. Stocks like Nagarjuna Fertilizers & Chem, Gujarat Narmada Valley Fertilizers, Rama Phosphates, Coromandel International among the top gainers.

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