This PSU Fertilizer stock, which is engaged in manufacturing and marketing of fertilizers and industrial chemicals, surged upto 6 percent after reporting a net profit growth of 615 percent year on year.
Share Price Movement
With a market capitalization of Rs. 7,955.34 Crores, the shares of Rashtriya Chemicals & Fertilizers Limited were up by 5.5 percent in the day’s trade touching a day’s high of Rs. 147.95 per share.
The stock reiterated from the day’s high and was trading at Rs. 144.20 which is 2.78 percent higher than the previous closing price of Rs. 140.20 apiece. It has delivered a negative return of 3 percent which has underperformed the Nifty Index in the past year.
Q3FY25 Financial Highlights
The company’s stock was in focus after reporting financial results for the quarter ending December 2024, Rashtriya Chemicals & Fertilizers consolidated revenue from operations has declined by 7.85 percent year on year from Rs. 4,903.52 crores in Q3FY24 to Rs. 4,518.35 crores in Q3FY25 and increased by 5.33 percent quarter on quarter from Rs. 4,289.56 crores in Q2FY25.
The consolidated net profit increased by 615.06 percent year on year from Rs. 11.22 crore in Q3FY24 to Rs. 80.23 crore in Q3FY25. As compared to Q2FY25, the company’s net profit has increased by 1.60 percent quarter on quarter from Rs. 78.96 crore. As the company deals in Fertilizers and the major part is owned by the Government, their trade receivables are dependent on Government subsidies.
Business Revenue & Operating Profit Segment
The company earns its revenue from operations from Fertilizers which contributed around 61.03 percent, followed by 9.02 percent contribution from Industrial Chemicals, 29.87 percent from Trading, and the remaining 0.08 percent from others as of the December 2024 quarter.
In the operating profit, the Fertilizer and Industrial Chemicals segment contributed the same percentage value, and the trading business widened losses for this quarter. Despite a decline in revenue in both the Fertilizer and Industrial segments, the profits surged. The decline in stock purchases and consumption of materials year on year might have contributed to higher operating profits for those segments.
Company Overview
Rashtriya Chemicals & Fertilizers Ltd. (RCF) was established in 1978 and is an Indian public sector undertaking that is into the manufacturing of fertilizers and chemicals. It is the fourth-largest urea producer in India, with two operating units in Maharashtra. The Government of India owns approximately 75 percent of the company as of December 2024.
Written By Santhosh S
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