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 and it went down further in Q3FY13. Though topline rose 17% at Rs.364 crore, but a whopping 20% rise in power and fuel cost and a forex loss of Rs.27 crore did not help the bottomline. Though the company pitched in with other income at Rs.13 crore, net profit was down at Rs.72 crore, down 34% sequentially. Its interest outgo is also pretty steep at Rs.17 crore which at end of 9MFY13 was at Rs.500 crore, though it was down 32%YoY.

Till end of FY12, the company had three verticals – hydrocarbons, multiplex and wind turbine and power. In current 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. The stock has been on the slump for some time now and from 1st March 2013, it will get excluded from NSE’s F&O segment.