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.