Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 operating revenue was ₹1,917 crore, down from ₹2,080 crore in Q2 FY24; H1 FY25 revenue at ₹3,938 crore, up from ₹3,732 crore in H1 FY24.

• Net profit for Q2 FY25 stood at ₹102 crore, compared to ₹178 crore in Q2 FY24; H1 FY25 net profit at ₹217 crore, down from ₹263 crore in H1 FY24.

• EBITDA margin for Q2 FY25 was 5%, lower than 8% in Q2 FY24, reflecting margin pressure in chemicals.

• Fertilizer sales improved, while chemical sales were impacted by an annual turnaround at the TDI Dahej plant and realization pressure.

• Production at Dahej complex resumed full capacity in October 2024.

Financial highlights

• Total income for Q2 FY25 was ₹2,040 crore, down from ₹2,232 crore in Q2 FY24; H1 FY25 total income at ₹4,160 crore, up from ₹3,972 crore in H1 FY24.

• Profit before tax for Q2 FY25 was ₹135 crore, down from ₹242 crore in Q2 FY24; H1 FY25 PBT at ₹292 crore, down from ₹358 crore in H1 FY24.

• Earnings per share (basic and diluted) for H1 FY25 was ₹14.76, compared to ₹16.97 in H1 FY24.

• Net cash flow from operating activities in H1 FY25 was ₹311 crore, down from ₹467 crore in H1 FY24.

• Net cash outflow from investing activities was ₹163 crore, mainly due to capital outlay and investments.

Outlook and guidance

• With Dahej Complex operating at full capacity and stable Bharuch operations, improved performance is expected in the coming quarters of FY25.

• Management anticipates better results driven by increased volumes and improved price realizations.