GUJARAT FLUOROCHEMICALS

A part of the Inox group, the company is India’s largest producer of Refrigerant Hydrochlorofluoro carbons in India where around 50% of its production is for captive consumption for making PTFE and the rest is sold in the open market. The company posted a set of very disappointing numbers for Q2FY13 after stellar numbers in Q4FY12 and Q1FY13. The company posted a 41% drop in net profit at Rs.110 crore and this would have been much sharper had it not been for the Rs.41 crore forex gain compared to forex loss of Rs.98 crore in Q1FY13. The performance for current Q2 was affected due to a fall in net revenue at Rs.310 crore, down 40% on a YoY. Its raw material costs rose 18% and finance cost was at Rs.14 crore.

Till end of FY12, the company had three verticals – hydrocarbons, multiplex and wind turbine and power. In Q1, power has been clubbed under ‘chemicals’ wherein hydrocarbons also comes and wind turbine has been transferred on a slump sale to Inox’s subsidiary; so now it has only one segment- chemicals. The stock was up recently on hopes that its promoter, the Inox Group, which holds 70.03% stake in the company might delist the company from the bourses but that hope, as of now might not be real. The company has an equity of Rs.10.99 crore and face value of Re.1 and reserves as at 30th Sept 2012 stood at Rs.2131 crore and its debt is at Rs.751 crore.