RCF Shares Surge After ₹1,000 Crore L&T Contract for New Fertilizer Plant

10 Oct 2024 , 02:59 PM

Rashtriya Chemical & Fertilizers (RCF) experienced a notable increase of 7.05%, reaching ₹183.05 per share, following the announcement of a substantial contract worth ₹1,000.27 Crore awarded to Larsen & Toubro (L&T). This contract involves the establishment of a 1,200 MTPD complex fertilizer plant at RCF’s Thal facility on a lump-sum turnkey (LSTK) basis.

At the time of writing on October 10, 2024, at 1:01 pm, L&T stock is trading at ₹3460.75, reflecting a 0.76% dip from the previous closing price. Over the past year, L&T stock has risen by an impressive 12.51%, and it has dipped 1.84% since the beginning of the current year.

In a regulatory update, RCF disclosed that its board of directors approved the purchase order for the L&T project during a meeting on October 9, 2024. The complex fertilizer plant is expected to be completed within 27 months and will utilize DAP (Diammonium Phosphate) as a base.

RCF specializes in the production and marketing of fertilizers and industrial chemicals. As of June 30, 2024, the Government of India held a significant 75% stake in the company.

In terms of financial performance, RCF reported a sharp decline in consolidated net profit, down 84.04% to ₹10.80 Crore for Q1 FY25, compared to ₹67.69 Crore during the same period the previous year. However, revenue from operations increased by 8.73% year-on-year, amounting to ₹4,396.06 Crore for the quarter ending June 2024.