GSFC saw a significant 89% drop in its net profit, reaching ₹24.43 crore in the fourth quarter of 2023-24, down from ₹224.91 crore in the same period last year. The company’s total income also fell by 16.34% year-on-year to ₹2,017.46 crore, compared to ₹2,411.56 crore a year earlier. Despite lower expenses at ₹1,993 crore in Q4FY24 versus ₹2,105.74 crore the previous year, the stock experienced a sharp decline, hitting a day’s low of ₹218.05, a drop of 9.7%.
GSFC’s stock is now 32% below its record high of ₹322.45 on January 23, 2024, although it remains 49% higher than its 52-week low of ₹146.15 on August 9, 2023. Over the past year, the stock has risen by 44%, but has lost about 10% in the year-to-date period of 2024.
The company attributed the challenging year to external factors affecting its fertilizers and industrial products segments. Sales in the fertilizer segment dropped by 21% and EBITDA decreased by 51% year-on-year due to subsidy rate revisions. Despite a volume increase of 6%, fertilizer sales declined by 25% in value terms. Industrial products sales also suffered an 8% YoY decline due to lower sales realization.
Despite these challenges, GSFC maintains a strong financial position with a high net worth and no long-term debt, enabling it to pursue its capital expenditure plans and withstand future uncertainties.
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