Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q4 23/24 earnings summary

Executive summary

• Revenue from operations for FY 2023-24 was ₹7,929.73 crore, down 22% year-over-year, with net profit at ₹484.79 crore, a 67% decline from the previous year.

• The company completed a buyback of 84.78 lakh shares, reducing equity capital and paid a dividend of ₹16.50 per share, subject to AGM approval.

• Operationally, several plants achieved over 100% capacity utilization, with record production in key products like TDI, Formic Acid, Ethyl Acetate, and others.

Financial highlights

• EBITDA for FY 2023-24 was ₹503 crore, down 73% from ₹1,879 crore in FY 2022-23.

• PAT declined to ₹485 crore from ₹1,464 crore year-over-year.

• EPS dropped to ₹31.67 from ₹94.20.

• Dividend payout for FY 2023-24 is ₹16.50 per share (50% of net profit).

• Cash and cash equivalents at year-end stood at ₹42 crore.

• Market capitalization as of March 31, 2024, was ₹13,126 crore.

Outlook and guidance

• Fertilizer segment faces margin pressure due to lower subsidies and high stock levels; realization expected to de-grow.

• Chemical segment expects continued competition and margin pressure but aims to operate plants above 100% capacity.

• Expansion projects in solar power, ammonia, and nitric acid are underway, with timelines extending to FY 2027-28.