Gujarat Narmada Valley Fertilizers shares dip 9% after revenue hit record high and Board declares highest ever dividend

Gujarat Narmada Valley Fertilizers & Chemicals ended on a red note after Q4 earnings. The scrip opened today at ₹659 apiece and closed on the NSE at ₹596.15 logging a dip of 10.54% on an intraday basis.

“The Board of Directors has in the said Meeting recommended a Dividend of Rs. 30/- per equity share of Rs. 10/- each Fully Paid Up (@ 300%) for the Financial Year ended 31st March, 2023, subject to approval of Shareholders at the ensuing Annual General Meeting. Upon approval by the Shareholders, the dividend declared will be paid within 30 days of declaration and the date of payment of dividend will be intimated in due course,” said Gujarat Narmada Valley Fertilizers & Chemicals in a stock exchange filing.

During Q4FY23, the company recorded a net revenue of ₹2,394 Cr compared to ₹2,750 Cr in Q3FY23. Its EBITDA stood at ₹369 Cr as against ₹438 Cr in December 2022 quarter. Gujarat Narmada Valley Fertilizers & Chemicals said its net profit stood at ₹334 Cr in Q4FY23 as against ₹324 Cr in Q3FY23. 

The company recorded historically highest ever revenue crossing the ₹10,000 Crores mark at ₹10,588 Cr in FY23. Its EBITDA reached ₹1,879 Cr and its net profit stood at ₹1,464 Cr in FY23.

Mr. Pankaj Joshi, IAS, Managing Director, GNFC said “I am happy to inform that FY 22-23 is a landmark year where revenue from operations has crossed ₹10,000 crores mark. With this, the company reported highest ever revenue of ₹10,227 Crores; 18% more than previous highest reported revenue in last financial year which was a year of historic performance.”

“The higher revenue has come from, both, fertilizers and chemicals. During FY 22-23, GNFC has crossed over a billion US$ worth of import substitution saving precious foreign exchange to the country and becoming active contributor to ‘Make in India’ initiative of Government of India,” he added.

“In addition, the contribution to National Exchequer in the form of direct and indirect taxes has crossed ₹1,000 crores. On operating front, new production and sales records have been established in case of Ammonium Nitrate Melt, Ethyl Acetate and Urea. During the year, new formic acid revamp project has been commissioned with 20 MTPD additional capacity. TDI-II at Dahej witnessed reliable operations during Q-4 which led to significant lowering of operating costs,” said Pankaj Joshi.

“The escalated tensions due to wartime resulted into very elevated price levels of all energy inputs during the year. Apart from this, the Bharuch complex underwent annual shutdown from last week of March-23, which had some volume related impacts in Q-4 apart from wage revision accruals on Y-o-Y basis. In spite of these factors, the top line has improved to historical highest, whereas on absolute basis, the full year profit before tax is the second highest ever at ₹1,932 Crores in its history,” Pankaj Joshi stated.

“On the back of strong financials, the Board of Directors at its meeting held on 18th May 2023 Chaired by Shri Vipul Mittra, IAS has recommended dividend of 300% which is the highest ever dividend. At the year end, anti-dumping duty continues to be in vogue in case of Aniline and TDI which will continue to lend good competitive support for profitable growth,” he further added.