India's Gujarat Narmada Valley Fertilizers Q4 profit plummets on weak demand

Coromandel International

18/05/2023 12:18

BENGALURU, May 18 (Reuters) - India's Gujarat Narmada
Valley Fertilizers & Chemicals Ltd  GNFC.NS  reported a nearly
48% fall in quarterly profit on Thursday, hit by weak demand in
the agriculture sector. 
    Consolidated net profit fell to 3.36 billion rupees ($41.09
million) in the quarter ended March 31, from 6.43 billion rupees
a year ago. 
    Fertilizer chemical manufacturers have seen their profit
squeezed due to lower demand in a seasonally weak quarter, even
as they incurred expenses in maintaining surplus inventory. 
    Some analysts have also warned that rising concerns tied to
the El-Niño weather pattern could hurt businesses in the
agriculture sector.
    Earlier this week, Gujarat Narmada's competitors Deepak
Fertilisers and Petrochemicals  DPFE.NS  and Coromandel
International  CORF.NS  also reported a fall in their quarterly
profits due to lower sales.
    The state-owned company saw a 3.2% drop in its fertilizer
segment revenue and a 23.4% fall in its chemicals business. This
hit the company's revenue from operations, which fell 18.1%. 
    "The Bharuch complex underwent annual shutdown from the last
week of March, which had some volume related impacts in the
fourth quarter apart from wage revision accruals on year-on-year
basis," said Managing Director Pankaj Joshi. 
    Shares of the company closed 8% lower on Thursday ahead of
the results.     
    

($1 = 81.78 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by
Shailesh Kuber)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))