GNFC Clocks Highest-ever Net Profit of Rs. 790-crore

Gujarat State-promoted fertiliser major, Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC), has reported a 51 per cent increase in its profit after tax (PAT) of Rs. 790-crore for the financial year 2017-18, which is the highest in its 42-year history. The net profit stood at Rs. 521-crore in the previous fiscal.

The company said in a statement that its turnover was also the highest at Rs. 6,058-crore, a 17 per cent growth over last year’s Rs. 5,170-crore. Also, its PBT of Rs. 1,162-crore (Rs. 715-crore) was the highest PBT recorded by any Gujarat Government company on a standalone basis.

Long term debt free

GNFC’s long-term debt level has also been reduced by 100 per cent from Rs. 2,180-crore in 2013-14 to nil as of date. The company paid off total debt of Rs. 1,436-crore in a single year. According to the company’s Managing Director, Mr. Rajiv Kumar Gupta, GNFC is now a long-term debt-free company.

“From liabilities worth Rs. 70-bn in 2013-14, we have come down to zero long term debt. We also changed our marketing strategy. We started exploring export markets and hence, from a 15 years average exports of Rs. 34-crore, this year the company registered Rs. 629-crore worth of exports to 66 countries. This improved our realisation,” said Mr. Gupta.

Prepayment of debt reduced the finance cost of the company by 51 per cent Y-o-Y. The company now plans to reduce its working capital requirements substantially as well, said Mr. Gupta.

According to GNFC, the growth in revenue and profits are significantly led by non-TDI chemicals, both in terms of revenue and profits. Roughly, 65 per cent of GNFC’s revenue comes from chemicals, while 35 per cent comes from fertilizers.