Gujarat State Fertilizers and Chemicals tanks ~7% post disappointing Q3 numbers

The revenue, EBITDA, and PAT missed estimates of Rs2,111cr, Rs208cr and Rs135cr by 6%, 27%, and 27%, respectively.

Jan 25, 2019 09:01 IST India Infoline News Service

Shares of Gujarat State Fertilizers and Chemicals tanked ~7% in intraday trade on Friday as the company reported a weak set of numbers for the quarter ended December 2018.

The Gujarat-based fertilizer maker missed street estimates on all fronts. 

The operating profit for the quarter came in at Rs152.4cr, down 5.6% yoy. The EBITDA margin contracted by ~287bps yoy to 7.6% in Q3FY19.

The revenue, EBITDA and PAT missed the estimate of Rs2,111cr, Rs208cr and Rs135cr by 6%, 27% and 27% respectively. Read more.

GSFC’s spread on caprolactum stood at ~US$1,250/MT in Q2FY19 which is expected to remain in US$1,100-1,200/MT range during FY19E.

Further, commissioning of 40,000MTPA melamine plant by Q4FY19 with strong ramp-up (utilization at ~80% by the end of FY20E) augurs well for the company. Management has guided margin of ~20% in the chemical business for H2FY19 on robust end-user demand.

Gujarat State Fertilizers & Chemicals Ltd is currently trading at Rs97.30 down by Rs8.3 or 7.86% from its previous closing of Rs105.60 on the BSE.

The scrip opened at Rs106.20 and has touched a high and low of Rs106.20 and Rs96.20 respectively. So far 66,38,026 (NSE+BSE) shares were traded on the counter. 

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