Gujarat Narmada Valley Fertilizers Reports Record Revenue, Declares Highest Ever Dividend; Shares Dip 9%

 

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) witnessed a significant drop in its share price following the announcement of its Q4FY23 earnings, despite achieving a record-high revenue. The company reported a net profit of ₹334 Cr in Q4FY23, slightly higher than ₹324 Cr in Q3FY23. The GNFC scrip opened at ₹659 apiece but closed at ₹596.15 on the NSE, registering a 10.54% intraday decline.

In a stock exchange filing, GNFC announced that its Board of Directors has recommended a dividend of ₹30 per equity share of ₹10 each, fully paid up (@ 300%) for the financial year ended March 31, 2023. The dividend payout is subject to approval by shareholders at the upcoming Annual General Meeting, and the payment will be made within 30 days of the declaration.

During Q4FY23, GNFC recorded a net revenue of ₹2,394 Cr, down from ₹2,750 Cr in Q3FY23. The company's EBITDA stood at ₹369 Cr, compared to ₹438 Cr in the previous quarter. For the full fiscal year 2022-23, GNFC achieved its highest-ever revenue of ₹10,588 Cr, with an EBITDA of ₹1,879 Cr and a net profit of ₹1,464 Cr.

Mr. Pankaj Joshi, IAS, Managing Director of GNFC, expressed his satisfaction with the landmark year, highlighting the company's contribution to import substitution and the 'Make in India' initiative. He also mentioned significant achievements in production and sales, such as Ammonium Nitrate Melt, Ethyl Acetate, and Urea, and the commissioning of a new formic acid revamp project. However, escalated energy input prices and the annual shutdown of the Bharuch complex impacted volumes in Q4.

Despite these factors, the Board of Directors, led by Shri Vipul Mittra, IAS, recommended the highest-ever dividend of 300%. GNFC remains optimistic about its profitable growth prospects, supported by the continuation of anti-dumping duties on Aniline and TDI.

With record revenue and the declaration of the highest dividend, GNFC faces temporary market pressure as investors react to the Q4 earnings, while the company's strong financials and competitive advantages position it well for the future.