Gujarat Narmada Valley Fertilizers & Chemicals: Ammonium Nitrate-II Expansion: Planned 94% capacity increase to meet rising demand

Gujarat Narmada Valley Fertilizers & Chemicals: Ammonium Nitrate-II Expansion: Planned 94% capacity increase to meet rising demand

  • GNFC optimized its operations and product mix to counter volatile raw material prices, achieving record sales in Technical Grade Urea, Methyl Formate, and Formic Acid. 
  • Industrial products such as Urea, TDI, and AN Melt contributed significantly to turnover, while fertilizer sales remained aligned with capacity and market demand. Through Narmada Khedut Sahay Kendras (NKSKs), the Company continued to serve farmers with Urea, ANP, and non-bulk agri-inputs. 
  • The IT division, (n) Code Solutions, recorded an income of ₹80 crore and Profit Before Tax of ₹17 crore, consolidating its position as a trusted provider of digital solutions.
  • Growth and Expansion Plans: 
  • GNFC remains committed to growth through strategic investments and expansion projects. Key initiatives include: 
  • 1. Solar Power Project: Completed commissioning of a 4 MW solar power plant at Charanka in June 2024. 
  • 2. Ammonia Plant Revamp: Expansion to 2,100 MTPD capacity, delivering annual savings of ~₹51 crore. 
  • 3. Coal-based Captive Co-Generation Power Plant at Dahej: A ₹613 crore project, expected to generate ~₹100 crore in annual savings. 
  • 4. Weak Nitric Acid-III Plant: A ₹1,420 crore project to expand capacity by 48%, targeted for completion by June 2027. 
  • 5. Ammonium Nitrate-II Expansion: Planned 94% capacity increase to meet rising demand. Expected to add ~₹1,000 crore revenue post-commissioning of WNA-III & AN-II. 
  • In addition, the Company has also engaged a Strategic Management Consultant to develop a long-term transformation plan, focusing on digitalization, structural redesign, and margin improvement. 



Video: https://www.youtube.com/watch?v=CIOPkfiHACo&pp=ygULZ25mYyByb3VuYXE%3D

  • Profitable operations supported by subsidy release support from GoI has helped improve the cash cycle
  • On operating front, new production and sales records have been established in case of Ammonium Nitrate Melt, Ethyl Acetate and Urea
  • During the year, new formic acid revamp project has been commissioned with 20 MTPD additional capacity  
  • Further foray into import substitutes like Polycarbonate and Cracker based product slates which will help improve the upstream capabilities are at advanced stage of consideration
  • As part of green initiatives, green hydrogen based investments are already approved by Board in principle. 
  • FY 2023 vs 2023
    • Company continues to be debt free and has resources to fund its already planned capex. Cash reserves in excess of ₹2,000 crores will lend good support for capex led growth.  Investments:  3,106
    • The company reported highest ever revenue of ₹10,227 Crores; 18% more than previous highest reported revenue in last financial year which was a year of historic performance
    • PAT: 1,464  Vs  1,704
    • Inflow From Operating Activities (Net) :  1,373 Vs  1,967 
    • Return On Equity :  17.32% Vs  24.55% 
    • Net Profit Ratio :  14.31% Vs  19.71%
    • Capex of ~₹2,200 crores on cards

 Thank you for contacting Rounaq! Please let us know how we can help you. 

Whatsapp: 7838491131

SEBI registered RA : Rounaq Bakshi
Waheguru

Comments

Post a Comment

Popular posts from this blog

Transcript of NMDC Limited post Q4 & FY 2024-25 Results

Image
Transcript of NMDC Limited post Q4 & FY 2024-25 Results Growth in PAT on an annual or a year-on-year 12-month basis of around 19% and PBT after exceptional item of around 16% Gold operations in Legacy, the first year was have also stabilized Legacy in the last 2 months, 3 months.  And hopefully, in this financial year, Legacy would also be showing good profits IMPORTS India which imports around 55 million, 60 million tons is likely to go up to 150 million to 160 million tons of import for India in terms of coking coal.  Have entered into arrangement with SAIL 60% of total sales as of date is routed through SAIL because send it to their stocking yard.  So based on the user charge, they also market mmdc products 40% still Nmdc market directly in terms of HR coils 2025 year will be much more substantially action packed in terms of NMDC Open new mines within India, coal and iron ore Outside India, we hope to acquire a few mines.  This will be a year where it will be ...
Read more

Looking to park some excess funds for the short term.?

Image
Looking to park some excess funds for the short term.  LiquidBeES by Nippon - has been the default choice for years. But lately, it’s become muscle memory to run everything past ChatGPT.  Just a quick: “Is there a better option than LiquidBeES?” It turns out, there is.  LIQUIDCASE by Zerodha AMC.  Difference was not subtle and decision was easier : - Expense ratio: Less than half of LiquidBeES - Net returns: ~6.2% vs ~5.7% (1-year annualized) - Same safety, same liquidity - AUM already >1/3rd of LiquidBeES in record time This is how discovery is changing. And this is how smart products go viral. Zerodha didn’t try to educate the market.  Discovery is no longer driven by ads or advisors.  It’s driven by habit, trust, and tools like ChatGPT. And when you get it right, traction follows fast. I won’t be surprised if LIQUIDCASE overtakes LiquidBeES in under 18 months. Thank you for contacting Rounaq! Please let us know how we can help you.  About me :...
Read more

𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚?

Image
  𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚? Whether you're living in the US, UAE, UK, or Singapore; India continues to be a hotspot for wealth creation. But why do so many NRIs still invest here? Here’s why 👇 ✅ Higher Returns – Indian equity markets, mutual funds, and even fixed deposits offer attractive long-term returns. ✅ Tax-Free Income – Interest from NRE and FCNR deposits is tax-free in India. Plus, DTAA helps avoid double taxation. ✅ Currency Edge – You invest in INR, and with the right timing, your gains in foreign currency terms could be even higher. ✅ Diversification – Indian assets like gold, real estate, and stocks add balance to a global portfolio. ✅ Future Ready – Planning to return to India someday? Build your base early with property or retirement-focused investments. ✅ Emotional Roots – Beyond numbers, India is still home. 💡 Whether it’s for wealth creation, retirement planning, or building assets back home, India offers a solid mix of growth + stability...
Read more