Shares of Gujarat State Fertilizers & Chemicals Ltd (GSFC) dropped over 5% to ₹194.20 on February 11, despite the company reporting solid Q3 FY25 financials. The decline in the stock price reflects broader market sentiment and profit-booking by investors.
Q3 FY25 Key Financial Highlights:
- Net Profit: GSFC’s net profit rose by 13.5% year-on-year (YoY) to ₹133.9 crore, compared to ₹118 crore in Q3 FY24, supported by strong operational execution and trading revenue growth.
- Revenue: Total revenue surged by 40.2% YoY to ₹2,814.1 crore, up from ₹2,007.8 crore in the same quarter last year, driven by higher sales of fertilizers and chemicals.
- EBITDA: Operating profit (EBITDA) jumped 47.2% YoY to ₹158.5 crore, up from ₹107.7 crore in the year-ago period, reflecting improved cost controls and efficient operations.
- Margins: The company maintained stable margins with EBITDA margins at 5.6% versus 5.4% in Q3 FY24, highlighting GSFC’s ability to manage cost pressures effectively.
Operational Insights:
The strong revenue growth was attributed to improved production capacity utilization, enhanced trading volumes, and favorable market conditions for fertilizers and chemicals. The company benefited from better product pricing and increased demand in key segments.
