Soda ash maker Gujarat Heavy Chemicals Ltd (GHCL) on Friday reported a 69% rise in consolidated net profit in Q3 FY25 to Rs 168 crore as against Rs 100 crore in the same period last year. Its revenue in the third quarter fell 1% to Rs 807 crore from Rs 813 crore in the same period a year ago.
The company’s share price closed at Rs 728.80, up 1.43% from Rs 718.55 yesterday. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for GHCL rose 57% to Rs 259 crore from Rs 165 crore in the same period last year. GHCL’s EBITDA margin stood at 32.0% in the quarter as against 20.3% in the previous year.
According to a GHCL report, this is attributed to the company’s operational strength resulting in cost savings. The company’s operating expenses declined 15% year-on-year to Rs 548 crore from Rs 648 crore in the same quarter last year.
The report attributes GHCL’s improved performance in the quarter to better cost control measures, while volumes remained almost flat.
External constraints such as cheap imports to India have continued to weaken soda ash demand in developed markets, which has impacted the company’s realisations.
