The Hindu Business Line : Gujarat Narmada net falls 39%

Ahmedabad, Sept. 24 Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) said its profit after tax fell 38.97 per cent in 2008-09 due to the challenges posed by the global economic meltdown.

It has declared dividend at 32.50 per cent compared with 42.50 per cent last year.

Despite these setbacks, the BSE-listed company is working on a growth plan involving an investment of Rs 4,000 crore in the next five years. It has tied up with the banks for term loans of Rs 2,001 crore for its new projects.

After implementation of these projects in 2011-12, the turnover of the company is expected to rise by about Rs 1,450 crore per annum, said Mr Guru Prasad Mohapatra, Managing Director.

GNFC is also considering a mega joint venture with Gujarat State Fertilizers and Chemicals Ltd (GSFC) and Gujarat Alkalies and Chemicals Ltd (GACL) to establish new projects at Dahej, Bharuch.

An MoU for this was signed among these three Gujarat Government-promoted companies during the Vibrant Gujarat Global Investors’ Summit, 2009, in January this year.

On Thursday, the GNFC stock on the BSE closed 1.24 per cent up at Rs 97.90.

In 2008-09, the company registered net sales of Rs 2,920.08 crore (Rs 3,433.91 crore), a fall of about 15 per cent, while its PAT was Rs 227.52 crore (Rs 372.88 crore). Despite the meltdown, the company set 33 new records in terms of production, marketing and dispatch.

GNFC sold the highest-ever 81,703 tonnes of fertilisers through its own retail outlets and out of 13.70 lakh tonnes sold, 6.29 lakh tonnes was sold in Gujarat.

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Gujarat Narmada net falls 39%