Soda ash manufacturer Gujarat Heavy Chemicals Limited (GHCL) on Friday reported a 69% growth in consolidated net profits at Rs 168 crore for Q3 FY25, compared to Rs 100 crore in the corresponding period last year. Its revenue in Q3 dropped 1% to Rs 807 crore from the year-ago period’s Rs 813 crore.
The company’s share price rose 1.43% from yesterday’s Rs 718.55, closing at Rs 728. 80.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for GHCL grew by 57% year-on-year to Rs 259 crore from the corresponding period last year’s Rs 165 crore. GHCL’s EBITDA margin for this quarter stood at 32.0% as compared to last year’s 20.3%. This is attributed to the company’s operational strength which resulted in cost savings, according to a GHCL report.
Operating expenses for the company decreased by 15% year-on-year to Rs 548 crore, down from the Rs 648 crore in the corresponding quarter last year.
The report attributed GHCL’s better performance this quarter to better cost control measures while volumes remained almost flat. External headwinds such as cheap imports into India continue to weaken the soda ash demand in developed markets which impacted the company’s realizations.
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