Q1 2027 Gujarat Narmada Valley Fertilizers & Chemicals Ltd Earnings Call Transcript
Key Points
- Q1 FY27 profit was the second highest in company history, driven by strong realizations.
- Revised energy norms for urea production (6.20 to 6.37 Gcal/MT) will improve fertilizer margins for three years.
- Most plants (acetic acid, ethyl acetate, TDI) resumed operations in July, with methanol being the only exception.
- Coal-based steam and power project at Dahej has started, saving ₹30,000-40,000 per MT of TDI by replacing costly gas.
- Kearney-led cost-saving initiatives (fuel oil negotiation, coal blend optimization, boiler overhaul) are expected to yield ₹250-300 crore in savings.
- Plants for acetic acid, ethyl acetate, and TDI were shut during Q1 due to cost economics, impacting volumes.
- Sales volumes declined substantially, with inventory buildup that is only gradually being liquidated.
- Geopolitical tensions (Middle East crisis) have caused volatile and elevated input costs (oil, gas, coal), creating uncertainty.
- Weak nitric acid plant project is delayed by about three months, though management expects to recoup the time.
- Global TDI oversupply persists, limiting pricing power despite temporary shutdowns by competitors.
Ladies and Gentlemen, good day and welcome to the Gujarat Narmada Value Fertilizers and Chemicals Limited Q1 FY27 Earnings Conference Call hosted by Panorag Services LLC on behalf of GNFC Limited.
From the management we have with us Mr. D.V. Parikh, Executive Director and Chief Financial Officer, Mr. Nitin Patel, Executive Director. Mr. PK Purohith, Executive Director, Mr. Rajesh Pillai, Company Secretary and Compliance Officer, and other senior management members.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions at the end of today's presentation. (Operator Instructions)
Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. DV Parikh, Executive Director and CFO, GNFC Limited.
Thank you and over to you, sir.
Thank you.
Thank you to moderator as well as the organizer
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