GSFC Posts Profit Boost Amid Growing Challenges in Fertilizer Sector

Gujarat State Fertilizers & Chemicals Limited achieved a 6.25% rise in net profit to Rs 119 crore for the December quarter, attributed to increased income. Despite a positive outlook for rabi crops, the fertiliser industry grapples with price, supply, and subsidy challenges affecting production and imports.

Gujarat State Fertilizers & Chemicals Limited (GSFC) announced a 6.25% rise in net profit to Rs 119 crore for the December quarter, a gain attributed to higher income streams compared to Rs 112 crore in the same period last year.

This financial improvement comes as total income grew to Rs 2,811 crore, up from Rs 2,024 crore a year ago, as per GSFC's regulatory filing. The company noted favorable conditions for rabi crops across major states, suggesting another robust harvest season is anticipated.

However, the fertiliser industry contends with challenges, specifically constrained by pricing, global supply conditions, and subsidy frameworks affecting production and imports. GSFC aims to optimize sales and strategically place stocks ahead of the upcoming kharif season, with a stable phosphatic fertilizer pricing and possible policy interventions informing procurement strategies.

(With inputs from agencies.)