Best ever Q3 result drives GNFC share to new peaks; stock returns 143% in a year

Amid reporting best-ever earnings in October-December quarter of FY22, the shares of Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) touched an all-time high of Rs 541.70 per share for the second day in a row after surging over 5 per cent on the BSE intraday on Tuesday. 

The stock in the last two days has gained almost 20 per cent and breached previous high of Rs 535.3 per share touched on February 7, 2022, on the BSE. At around 01:47 pm, the counter is trading at its new high level as compared to 0.06 per cent fall in the S&P BSE Sensex. 

On February 4, 2022, the fertilizer and chemical company reported best-ever quarterly performance in the December quarter (Q3FY22). It’s consolidated net profit more-than-doubled to Rs 540.78 crore from Rs 242.59 crore in the corresponding quarter of previous fiscal.   

Similarly, the consolidated revenue from operations in third quarter of the financial year 2021-22 (Q3FY22) grew by 58 per cent year-on-year YoY at Rs 2,380 crore, while the margins expanded 400 basis points at 28 per cent year-on-year (YoY). 

There has been improved overall production and sales volume performance except for the product mix optimisation because of which the Q3 margins enhanced, GNFC said in its results filing on BSE.  

The margins remained protected despite elevated input costs, mainly on the back of support from higher realisations on output products front mainly led by chemicals as well as serving profitable product mix, the fertilizer company further said.  

The company in its outlook said that it is confident of stable performance balancing its product mix to serve markets. Besides, it is also in a position to leverage boom in specific products and optimize, both, realization and profits, with flexible and multiple product basket. 

The stock in the last one year has surged over 143 per cent on the BSE, as compared to over 12 per cent rise in the S&P BSE Sensex.