Profit Down 23%; To Buy Back 5.46% Stake At Rs 770 Apiece

Gujarat Narmada Valley Fertilizers and Chemicals Ltd. reported a decline in net profit for the second quarter, amid a fall in operational revenue. 

The company’s net profit fell by 23.5% year-on-year to Rs 182 crore in the quarter ended September, according to its exchange filing. 

The operational revenue of the company fell by 19.6% to Rs 2,080 crore, the statement said. 

While lower pressure on margin resulted in decline in the chemical segment, the fertiliser segment reduced mainly due to continuously reducing nutrient subsidies on complex fertiliser and lower volume, particularly of urea, the statement said. 

With improved volume availability and output prices already quite moderate, the margin profile should increase as input prices further stabilise, the company said. 

The margin have come under pressure mainly due to erosion in net sales realisations practically across the chemical products portfolio, Pankaj Joshi, IAS, managing director, said.

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