Q1 2025 Gujarat State Fertilizers & Chemicals Ltd Earnings Call Transcript
Key Points
- Significant rebound in financial performance with PBT increasing from INR 23 crores to INR 118 crores and PAT from INR 21 crores to INR 93 crores.
- Achieved the second highest sales in the last 15 years for the first quarter, amounting to INR 2,144 crore.
- Fertilizer sales increased by 7% in value terms on a year-over-year basis, with a 30% growth in sales volume.
- Favorable rainfall has facilitated the acceleration of Kharif cultivation, maintaining robust demand for fertilizers.
- The company remains debt-free with a strong balance sheet and healthy liquidity, supported by prompt government subsidy releases.
- Margins for fertilizers, particularly DAP, are under pressure, with some products experiencing negative contributions.
- Government reduced the subsidy outlay for fertilizers by approximately 13% in the current year budget.
- Domestic prices for industrial products remain subdued due to the dumping of cheap Chinese imports, impacting profitability.
- Caprolactam and nylon 6 production faced challenges due to annual shutdowns and increased raw material costs.
- Projects such as the HX Crystal Project and Urea Revamping Project are delayed, with full impact on turnover and margins expected only in the next financial year.
Ladies and gentlemen, good day, and welcome to Gujarat State Fertilizers & Chemicals Limited Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anurag Halakhandi from Anurag Services. Thank you, and over to you, sir.
Good afternoon, everyone, and welcome to the first quarter earnings conference call for Gujarat State Fertilizers & Chemicals Limited. The call is hosted by Anurag Services LLP. Present from the management team are Mr. S.K. Bajpai, Senior Vice President, Finance and CFO; and Mr. S.V. Varma, Executive Director Agribusiness and HR, along with other senior dignitaries. We appreciate the management for granting us the opportunity to host this call.
Let's begin with the management's opening remarks followed by a question-and-answer session. Thank you, and over to you, sir.
Okay. So good afternoon to all, and welcome to the
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