This Smallcap Chemical stock which deals in the business of chemicals and commodity products was up by 8 percent in the day’s trade after reporting net profit growth of 68% year on year.
Price Action
With a market capitalization of Rs. 6,985.31 Crores, the shares of GHCL Limited were up by 8.44 percent in the day’s trade touching a day’s high of Rs. 779.30 per share. The stock reiterated from the day’s high and closed at Rs. 729.50 per share which is 1.52 percent higher from the previous closing price of Rs. 718.60 apiece.
Q3FY25 Results
The stocks of GHCL surged after the company reported Q3FY25 results. Their results show revenue from operations of Rs. 778.73 crore which declined by 2.46 percent year on year, from Rs. 798.45 crore in Q3FY24 and a 1.77 percent decrease from Rs. 792.79 crore in Q2FY25.
Their net profit increased by 68.67 percent year on year, from Rs. 99.85 crores in Q3FY24 to Rs. 168.42 crores in Q3FY25. Quarterly, the profits increased by 8.77 percent from Rs. 154.83 crore. The return on net worth for the Q3FY25 stood at 18 percent, RoCE at 17 percent, and Debt to Equity Ratio at 0.23 times.
Recent Developments
The company recently received approval from the Ministry of Environment, Forest and Climate Change for the Soda Ash Greenfield project in Kutch, Gujarat and it will help the company to set up a 1.1 MMTPA Soda Ash Plant over six years with a capital outlay of Rs. 6,500 crore. Further to improve Soda Ash prices, the Indian Government has imposed a Minimum Import Price on Soda Ash imports upto 30th June 2025 with a CIF value of Rs. 20,108 or higher per MT.
Management Commentary
Commenting on Q3FY25 results, R.S. Jalan, the MD of GHCL said “We are excited to report that our expansion initiatives are gaining significant momentum. The receipt of environmental clearance for our greenfield Soda Ash plant, coupled with the commissioning of our Vacuum Salt and Bromine projects in FY26, positions us for substantial growth and product basket expansion. As always, we are committed to driving shareholder value through strategic action and consistent execution of our plans.”
About the Company
GHCL Limited was established in 1983. It is a prominent Indian manufacturer specializing in soda ash and home textiles. They operate primarily in two segments namely Inorganic Chemicals, producing soda ash and sodium bicarbonate, and Textiles, focusing on yarn manufacturing and home textile products.
Revenue Mix
The company is engaged and recognizes its revenue under a sole segment named Chemical activity as of December 2024.
Products and Services
GHCL Limited produces a variety of products which includes soda ash which is used in detergents and glass manufacturing and sodium bicarbonate such as baking soda. The company also manufactures edible salt and industrial salt under the brands i-FLO and Sapan. Additionally, GHCL focuses on home textiles, offering yarn and finished textile products for domestic and international markets.
Written by Santhosh S
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