Shares of Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) fell sharply on Thursday, reacting to a weak set of Q1 FY25 numbers. The stock was down 5.55% to ₹514.70 on the NSE as of afternoon trade, with volumes crossing 2.6 lakh shares.
The company posted a net profit of ₹78 crore, down 32.2% year-on-year from ₹115 crore. Revenue declined nearly 21% to ₹1,601 crore from ₹2,020 crore in Q1 FY24.
The biggest disappointment came from operating performance. EBITDA plunged nearly 80% YoY to ₹31 crore, while margins shrank to just 1.94% compared to 7.57% in the year-ago quarter — a drop of over 560 basis points.
GNFC attributed the weak profitability to adverse pricing in key chemical segments, but maintained an optimistic outlook. The company is working on cost structure revisions and aims to boost margins and expand capacity through several initiatives. These include:
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A new power plant to improve energy efficiency
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Ammonia and nitric acid expansion projects
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A planned ammonium nitrate project
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Anti-dumping duty on aniline extended until 2030, supporting long-term pricing stability
Despite near-term challenges, GNFC’s management remains focused on strategic investments to restore profitability in the coming quarters.
Disclaimer: This article is based on publicly available financial data and company statements. It does not constitute investment advice.
