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GNFC outsmarts peers, remains most profitable player in 2016-17

Mar 26th, 2018 9:57 am | By | Category: LATEST NEWS

Dr. Rajiv Kumar Gupta, IAS (MD) GNFC Ltd.

Dr. Rajiv Kumar Gupta, IAS (MD) GNFC Ltd.

GNFC ltd. of which Dr. R.K. Gupta is the MD, GNFC outsmarts peers, remains most profitable player in 2016-17
As per the relative peer analysis by rating agency ICRA and advisory firm RBSA advisors, GNFC has been the most impressive state run organization outflanking peers on number of key financial parameters in 2016-17. GNFC not just recorded the highest profit after tax (PAT) yet additionally bucketed the general fertilizer industry drift by accomplishing growth in revenues.
The wide range of its product portfolio, high operational excellence and pre-payment of its debt has helped GNFC to outperform peers in the business.
According to ICRA report, GNFC accomplished the most noteworthy development in Profit after Tax (PAT) among all the Fertilizer companies, including those which additionally work in chemicals segment. While GNFC’s PAT surged 11%, other players, for example, GSFC, IFFCO, IPL and CIL saw their PAT ascent in the scope of 3% – 8%.
GNFC remains the most gainful player in the business with operating profitability (EBITDA) at 14% in FY16 and 17% in FY17, while other companies in the industry have reported operating profit in the range of 4% to 12%.
When normally the revenues crosswise overall fertilizer industry declined by 17% with all players recording a plunge in revenue growth, GNFC posted a development, but on a considerably littler base at 1%, in FY 17.
GNFC has been growing at a CAGR of 5% in last five years (FY 12-17), but the company’s PAT rose at a CAGR of 13% for the same period. This suggests while the organization has developed in accordance with the capital intensive industry it operates in, yet it has enhanced its operational efficiency majorly.
The organization has been growing exponentially, under leadership of the current Managing Director Dr. Rajiv Kumar Gupta. His decisions and directions of reducing the debt level was instrumental in bringing down the total debt to Rs 1,959 crore in FY17 from Rs 3,832 crore in FY15. “With swift reduction in debt levels, the organization has possessed the capacity to lessen its finance cost in last three fiscals, which had brought about greater PAT margins.” GNFC’s total debt dropped 37% in FY17, the sharpest reduction in the industry.
For the organizations working in both chemicals and fertilizer areas, for example, Rashtriya Chemicals and Fertilizers Limited, Gujarat State Fertilizers Corporation and Deepak Fertilizers and Petrochemicals Corporation Limited, GNFC has the highest Return on Capital Employed (ROCE) at 14.40 % and the highest Return on Equity (ROE) at 14.70 % which shows how focused the organization is at transforming the money put into the business into strategic investments and development for the organization and shareholders.

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