Rashtriya Chemicals & Fertilizers Ltd’s Q1FY19 standalone net profit rises 11.87% yoy to Rs22.99cr

•The company’s standalone revenue stood at Rs1,943.48cr, up 25.02% yoy but down 0.9% qoq.
MUMBAI,  8th AUGUST, 2018 (GPN) : (RCF) Rashtriya Chemicals and Fertilizers Ltd’s standalone revenue for Q1FY19 came in at Rs1,943.48cr, up by 25% yoy. The operating profit for the quarter came in at Rs94.14cr, up significantly by 40.4% yoy. The EBITDA margin expanded by ~53bps yoy to 4.8% in Q1FY19. The net profit after tax for Q1FY19 came in at Rs22.99cr, up by 11.9% yoy.
• Gross profit margin of the company for Q1FY19 overall remained stable with marginal decline by ~22bps yoy to 61.5%. This is on account of likely improvement in product mix and price hikes on products offsetting input cost inflation.
• The EBITDA margin expanded by ~53bps yoy to 4.8% in Q1FY19 on account of higher operating leverage. The employee benefits expense and other expense increased by 5% and 26.9% yoy to ~Rs149cr and ~Rs952cr respectively in Q1FY19.
• Finance cost increased significantly to Rs33.76cr in Q1FY19 vs. Rs10.26cr in Q1FY18.
• Revenue from fertilizers segment increased by 26% yoy to Rs1,710.78cr and segment EBIT was up by 64.7% yoy to Rs62.72cr, in Q1FY19. The EBIT margin was up by ~86bps to 3.7% in Q1FY19.
• The industrial chemicals segment increased substantially in terms of revenue by 20.1% yoy to Rs228.23cr in Q1FY19. The segment EBIT increased to Rs21.74cr in Q1FY19 vs. Rs5.04cr in Q1FY18. The EBIT margin stood at 9.5% for Q1FY19 as against 2.7% for Q1FY18. The quarterly segment RoCE improved significantly to 10.6% in Q1FY19 vs 2.8% in Q1FY18.
• FACT-RCF Building Products Ltd (FRBL) is a 50:50 joint venture between RCF and FACT (Fertilizers and Chemicals Travancore Ltd). Company had given corporate guarantee on behalf of FRBL to its bankers. A one-time settlement was entered with the bankers and FRBL with both the joint venture partners RCF & FACT contributing equally towards the same. The share of FACT amounting to ~Rs25.50cr has been paid by RCF and shown as Inter Corporate Deposit (ICD) advanced to it. The principal amount of Rs25.50cr and interest for the quarter amounting to ~Rs47lakhs has not been provided for contingency by RCF, despite FACT’s adverse financial position. Company is certain of settlement of the ICD given as FACT is a Government owned Entity. ENDS
TODAYS STOCK VIEW : Rashtriya Chemicals & Fertilizers Ltd ended at Rs. 71.10, up by 0.4 points or 0.57% from its previous closing of Rs. 70.70 on the BSE.
The scrip opened at Rs. 71.35 and touched a high and low of Rs. 71.95 and Rs. 70.75 respectively. A total of 20,91,058 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.

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