GNFC is 'star' of the dayGNFC

GNFC is the top gainer on the BSE since the opening bell today. It opened 10% higher at Rs.501.50 and went on to hit a new 52-week high at Rs.524.30.

The market has given its Q3FY22 earnings a big thumbs up. The company reported a 123% (YoY) rise in consolidated net profit at Rs.541 crore and this was on a 58% increase in revenue from operations at Rs.2380 crore.

Despite a 47% rise in total expenses, led mainly by raw material costs, the company’s EBITDA was up 86% at Rs.674 and margins showed an increase from 24% to 28%.

Its revenue from fertilizers business stood rose 46% at Rs.737 crore and that of chemical business was up 64% at Rs.1622 crore.

While the input costs have gone up significantly across the board, it has impacted fertilizer imports significantly and on YTD basis, total fertilizer imports are down by 33% witnessing across the board import reductions in all key fertilizers i.e. Urea, DAP, NP/NPKs and MOP. However, there is no significant reduction in the demand indicating that accumulated inventories are liquidated in the process.

A new capacity of 1.27 Million MTs of Gorakhpur Urea Plant is added which is revived at a cost of around ?8,600 crores. With this, total around 2.5 Million MTs of Urea capacities including the newly added capacities of Ramagundam plant taken together are in place. Around 4 Million MTs of additional Urea capacities are also in the pipeline.