GSFC stock prices zoomed 15% to Rs. 163.80 on account of stellar Q1 results.

Gujarat State Fertiliser Chemical company clocked in consolidated net profit Rs 345.81 crore in Q1FY23, more-than-double as against Rs 136.11 crore in Q1 FY22, along with healthy operational income. The net profit grew 21% QoQ from Rs 286 crore in Q4FY22. The company’s revenue from operations jumped 63% YoY and 48% QoQ at Rs 3,018 crore as against Rs 1,850.91 crore in the same quarter in the previous year.
Total expenses surged by 49.78% to Rs 2,541.01 crore in Q1 FY23 vs Q1 FY22. Cost of raw materials consumed jumped 45.84% to Rs 1,559.46 crore in Q1 FY23 from Rs 1,069.33 crore in Q1 FY22.

The stock zoomed to Rs. 163.80 apiece (approx. up by 15%) during Friday’s trade, supported by heavy volumes witnessed on the counter. The stock hit its 52-week high of Rs 198.70 in April and after the results, the price bounced back by 39% from its recent low of Rs 117.75 witnessed in June 

The fertiliser industry’s performance improved on normal monsoons and improved reservoir levels, higher coverage under assured irrigation, remunerative crop prices, export focus, favourable Government policies including fertiliser subsidy, record procurement under MSP, and push towards new products and technologies.

However, even under favourable conditions, the fertiliser availability during the year was impacted by the elevated costs of manufactured and imported products, conflicting demand from key fertiliser consuming markets, supply challenges from the major sources and low opening stock due to consecutive years of normal monsoons resulted in lower opening stocks. The Government’s proactive approach and close coordination with the industry ensured its timely access to the farmers.