Mumbai, India – January 29, 2025—Gujarat Fluorochemicals Limited (NSE: FLUOROCHEM, BSE: 542812) reported strong financial performance in Q3 FY25, reflecting steady revenue growth, margin expansion, and continued investments in specialty chemicals and green energy solutions. The company has also announced a significant business restructuring plan and the slump sale of its 57 MW captive wind power plant to streamline operations.
Financial Performance: Q3 FY25
Standalone Financial Highlights (₹ in Crore)
- Revenue from Operations: ₹1,123 crore (up 23.7% YoY) from ₹908 crore in Q3 FY24.
- Total Income: ₹1,137 crore (up 23.4% YoY) from ₹921 crore.
- EBITDA: ₹307 crore (up 88.9% YoY) from ₹163 crore.
- Profit Before Tax (PBT): ₹205 crore (up 173.3% YoY) from ₹75 crore.
- Net Profit: ₹153 crore (up 173.2% YoY) from ₹56 crore.
- Earnings Per Share (EPS): ₹13.93 per share (up 174.8% YoY) from ₹5.07.
- Revenue from Operations: ₹3,407 crore (up 14.4% YoY) from ₹2,979 crore.
- Net Profit: ₹408 crore (up 22.5% YoY) from ₹333 crore.
Consolidated Financial Highlights (₹ in Crore)
- Revenue from Operations: ₹1,148 crore (up 15.7% YoY) from ₹992 crore.
- Total Income: ₹1,162 crore (up 15.6% YoY) from ₹1,005 crore.
- EBITDA: ₹294 crore (up 42.7% YoY) from ₹206 crore.
- Profit Before Tax (PBT): ₹175 crore (up 59.1% YoY) from ₹110 crore.
- Net Profit: ₹126 crore (up 57.5% YoY) from ₹80 crore.
- Earnings Per Share (EPS): ₹11.47 per share (up 57.3% YoY) from ₹7.29.
- Revenue from Operations: ₹3,512 crore (up 11.6% YoY) from ₹3,148 crore.
- Net Profit: ₹355 crore (up 6.3% YoY) from ₹334 crore.
Operational and Cost Efficiency
- Cost of materials consumed: ₹411 crore (up 17.4% YoY), reflecting higher production costs.
- Power and fuel costs: ₹200 crore (up 12.9% YoY) due to increased energy consumption.
- Depreciation & amortization: ₹76 crore (up 16.9% YoY) due to new asset additions.
- Finance costs: ₹40 crore (up 11.1% YoY) despite efficient debt management.
- Net Worth: ₹6,298 crore, up from ₹5,923 crore at the end of FY24.
Business Restructuring and Expansion Initiatives
1. Composite Scheme of Arrangement
The Board has approved the Composite Scheme of Arrangement, which involves:- Demerger of Wind Business (57 MW captive power plant) from Inox Leasing and Finance Ltd. (ILFL) into Inox Holdings and Investments Ltd. (IHIL).
- The merger of ILFL into Gujarat Fluorochemicals Ltd. (GFCL) simplifies the ownership structure.
- Cancellate ILFL’s 5.78 crore shares in GFCL and reissue them to ILFL shareholders.
2. Sale of Wind Power Business
- Slump sale of the 57 MW wind power plant to IGREL Mahidad Ltd., a wholly owned subsidiary, for ₹200 crore.
- Transactions are expected to close in Q4 FY25, allowing GFCL to focus on its core chemicals business.
3. Expansion into EV Battery Chemicals
- Launched subsidiaries GFCL EV Products Ltd. and GFCL EV Products GmbH (Germany).
- A new wholly owned subsidiary in Singapore (GFCL EV Products Pte. Ltd.) will manage global trading and investments in battery chemicals.
- Issued ₹799.99 crore worth of equity and convertible warrants to external investors, reducing ownership in GFCL EV Products Ltd. to 96.87%.
Key Financial Ratios and Debt Position
- Debt-to-Equity Ratio: 0.33, indicating a low leverage position.
- Current Ratio: 1.38, ensuring strong short-term liquidity.
- Interest Service Coverage Ratio: 5.63x, demonstrating high-interest coverage.
- Net Profit Margin: 11.21%, up from 8.26% YoY, reflecting profitability improvements.
Market Outlook and Growth Prospects
- Demand for fluorochemicals, specialty chemicals, and EV battery materials is rising, supporting long-term growth.
- Strategic investments in battery chemicals and green energy will strengthen GFCL’s market position.
- Potential regulatory approvals for restructuring could unlock value for shareholders.
Investor Considerations
- Strong profit growth with higher margins and operational efficiencies.
- Strategic shift towards high-value specialty chemicals and green energy.
- Debt levels remain under control, supporting future expansion.