Gujarat Fluoro Q2FY23 PAT up 74.38% at Rs361.23cr as inventory efficiency and forex gains boost profits for the quarter

19 Oct 2022 , 07:56 PM

Gujarat Fluorochemicals reported 51.59% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs1,461.34cr. Sequential revenues were up 9.55%.

In the first half of the fiscal year, the company saw a sharp spike in the interest financing charges. However, that impact was offset by inventory efficiency gains, which resulted in the cash from operations in the first half of the year almost flat to positive at Rs483 crore.

The fluorochemicals business has been a big beneficiary of the chemicals industry slowdown in China, which has moved more of the global demand to India.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 74.38% at Rs361.23 crore while the profits were up 17.95% sequentially.

The surge in profits at a rate faster than the growth in sales, can be attributed to two reasons.

Firstly, there was higher forex gains in the quarter and secondly, the company relied on inventory efficiency gains for the quarter to boost its net profits.

Net margins came in at 24.72% for Q2FY23 as compared to 21.49% in the year ago quarter and 22.96% in the sequential June 2022 quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	Gujarat Fluoro
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,461.34	₹ 964.01	51.59%	₹ 1,333.98	9.55%
Net Profit (Rs cr)	₹ 361.23	₹ 207.15	74.38%	₹ 306.26	17.95%
Diluted EPS (Rs)	₹ 32.52	₹ 18.66		₹ 27.62
Net Margins	24.72%	21.49%		22.96%