GUJARAT FLUOROCHEMICALS

Gujarat Flurochemicals hit new high when it announced its very good set of numbers for Q2FY15. YoY, its consolidated net sales rose 80% at Rs.1254 crore and net profit soared 89% at Rs.106 crore. EBITDA for the quarter was up 74% and the company ended the quarter with a cash profit of Rs.190 crore, up 65%. The good news here is that there are two more quarters to go and in first half itself, it has punched in a net profit of Rs.150 crore, which is already 80% of FY14 net profit of Rs.186 crore. Thus if same trends continue, it will end FY15 on a bumper note.

Till couple of years ago, the company was recognized as India’s largest producer of Refrigerant Hydrochlorofluoro carbons where around 50% of its production was for captive consumption for making PTFE and the rest is sold in the open market. But today, its entire business profile has changed. Today, it has four verticals, chemicals which are refrigerant gases and rest; then there is Wind Turbine Business which is manufacture and selling of wind turbine generators and installing and maintaining the same. Third is Wind Power Generation business which is generation and sale of power. Fourth vertical is theatrical exhibitions, which is operating and managing multiplex cinema theaters. From gases, today, its biggest contributor is Wind Turbine Business, which in current Q2 contributed 44% to the total revenue and brining in the maximum EBIT at Rs.83 crore. It is only then that comes chemicals, contributing 28% to revenue but its EBIT rose the sharpest, by 188%. Theatrical business contributes 20% to revenue. Thus it is more of a wind turbine maker than chemicals making company.