Q3 2025 GHCL Ltd Earnings Call Transcript
Key Points
- GHCL Ltd (BOM:500171) reported strong financial performance with an EBITDA margin increase to 32% from 20.3% year-over-year.
- The company achieved higher production volumes and operational efficiency, contributing to better cost control and profitability.
- GHCL Ltd is debt-free with a net cash surplus of INR 920 crores, reflecting a strong balance sheet.
- Strategic projects, including a greenfield project and new salt field in Gujarat, are progressing well, with completion expected in 2026.
- The company is well-positioned to benefit from increased domestic demand for soda ash due to government initiatives like the Minimum Import Price (MIP) and duties on solar glass imports.
- Revenue for the quarter was slightly lower at INR 807 crores compared to INR 813 crores in the same quarter last year, impacted by cheaper imports.
- The soda ash market faces suppressed demand in Western economies and subdued prices due to strong supply from China.
- GHCL Ltd's growth in profit is heavily dependent on soda ash price recovery, as the company is operating near full capacity.
- The company faces challenges from volatile raw material prices and global market conditions, which could impact margins.
- The impact of the MIP on reducing import volumes and stabilizing prices may take time to materialize, affecting short-term performance.
Ladies and gentlemen, good day, and welcome to the GHCL Limited Q3 FY25 earnings conference call hosted by Emkay Global Financial Services. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Meet Vora from Emkay Global Financial Services. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. Thank you for joining us on GHCL's Q3 FY25 Results Conference Call. I would like to welcome the management and thank them for giving us this opportunity to host them. We have with us today Mr. R.S. Jalan, Managing Director; Mr. Raman Chopra, CFO and Executive Director of Finance; Mr. Manu Jain, General Manager, Investor Relations and Finance.
Before we begin this call, I would like to point out that some statements made in this call may be forward-looking, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I shall now hand over the call to the management for their opening
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