GHCL reports Q1 FY25 financial results: Revenue up 1% QoQ, PAT surges 21%

GHCL Limited, one of India’s prominent chemical manufacturers, has announced its financial results for the first quarter of FY25, revealing a modest revenue increase and a notable rise in profit after tax (PAT). The company’s standalone revenue reached ₹849 crores, marking a 1% increase from the previous quarter but an 18% decline compared to the same quarter last year. PAT, excluding exceptional items, saw a significant 21% increase to ₹151 crores from the previous quarter, although it decreased by 27% year-over-year.

Strong Quarter Despite Market Fluctuations

GHCL’s Managing Director, R. S. Jalan, expressed optimism about the company’s performance, attributing it to robust domestic consumption and strategic growth initiatives. Jalan highlighted a 17% improvement in EBITDA, underscoring the company’s strong start to the year despite mixed global soda ash market conditions. The demand in key domestic sectors, such as detergents and glass, has been a positive driver. Additionally, the expanding solar glass industry presents new opportunities, bolstered by the recent 10% import duty on solar glass introduced in the Union Budget.

Strategic Initiatives and Future Outlook

Jalan emphasized the company’s commitment to operational excellence and strategic growth. GHCL’s Greenfield soda ash plant is progressing as planned, and the company anticipates commissioning its Vacuum Salt and Bromine projects in the upcoming year. The benefits from the Salt Yield enhancement and Sodium Bicarbonate expansion projects are expected to further bolster the company’s performance. These efforts are anticipated to enhance GHCL’s market position and deliver significant value to shareholders.

Detailed Financial Performance

In terms of financial metrics, GHCL reported a net revenue of ₹849 crores for Q1 FY25, which reflects a 1% increase compared to Q4 of the previous fiscal year but an 18% drop from Q1 FY24. EBITDA for the quarter stood at ₹235 crores, up by 17% sequentially but down 24% year-over-year. PAT, excluding exceptional items, rose by 21% from the previous quarter to ₹151 crores, although it represented a 27% decline compared to the same quarter last year.

Headquartered in India, GHCL Limited is primarily involved in the manufacture of soda ash (anhydrous sodium carbonate), a key raw material for the detergents and glass industries, and sodium bicarbonate (baking soda). Following a demerger, its spinning business now operates under GHCL Textiles Limited, which continues to produce various yarns for domestic and international markets.

GHCL’s focus on domestic market strength and strategic growth initiatives are likely to sustain its performance despite the global market’s uncertainties. The expansion into the solar glass sector and the benefits from recent budgetary policies could provide additional momentum for GHCL’s future growth.