GHCL declares dividend of ₹12, net profit slides 50% in Q4

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chemical and textile firm GHCL Ltd on Monday (May 6) reported a 50.16% year-on-year (YoY) drop in net profit at ₹125 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, GHCL Ltd posted a net profit of ₹250.8 crore, the company said in a regulatory filing. The company’s revenue from operations dipped 26.5% to ₹823.4 crore against ₹1,119.8 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA fell 47.1% to ₹184.5 crore in the fourth quarter of this fiscal over ₹348.7 crore in the year-ago period. The EBITDA margin stood at 22.4% in the reporting quarter compared to 31.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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The board has recommended a dividend of ₹12 per equity share of ₹10 each i.e. 120% on the paid-up equity capital for the financial year ending March 31, 2024. The dividend will be paid on or after July 8, 2024, if approved by the members in the ensuing annual general meeting.

The board has approved the revenue budget for the company for the financial year 2024-25. Notably, GHCL earmarked a capital budget of approximately ₹224 crore for the fiscal year, inclusive of a substantial investment in the bromine project, amounting to ₹117 crore.

Additionally, the company unveiled plans for a soda ash greenfield project. This project, set to be located in Kutch, Gujarat, entails an investment of ₹4,000 crore and aims to establish an annual production capacity of 5.5 million tonnes.

Also Read: Gujarat Fluorochemicals Q4 net profit tumbles 70%, revenue slips 23%

The results came after the close of the market hours. Shares of GHCL Ltd ended at ₹498.65, down by ₹12.40, or 2.43%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow