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AHMEDABAD: Leading soda ash manufacturer, GHCL (formerly Gujarat Heavy Chemicals Limited) posted a 51% decline in its standalone net profit during the second quarter of FY 2024. According to the company, reduced demand and an oversupply situation in the global market led to a major decline in soda ash prices and therefore, realisations suffered.
The company posted a profit of Rs 143 crores during the quarter as compared to Rs 291 crore in the corresponding quarter last year.GHCL also posted a decline in its net revenue which stood at Rs 817 crore as compared to Rs 1,183 crore during the same period.
RS Jalan, Managing Director, GHCL said, “Our performance during the quarter was influenced by various factors such as ongoing weakness in the global Soda Ash markets leading to oversupply situation, increased imports into India and reduction in energy and associated costs. While the global Soda ash markets continue to remain soft, we have started to observe early signs of demand recovery in the domestic market, especially in the conventional end-user sectors coupled with the demand from the new sunrise industries of solar glass, lithium and sodium bicarbonate.”
“Going forward, we have ambitious growth plans in order to maintain this trajectory. These include Greenfield expansion, vacuum salt project, product basket expansion and salt yield improvement among others. We are certain that once completed, these projects will accelerate our growth momentum and position us among the top-tier industry leaders,” Jalan further went on to say.
The company posted a profit of Rs 143 crores during the quarter as compared to Rs 291 crore in the corresponding quarter last year.GHCL also posted a decline in its net revenue which stood at Rs 817 crore as compared to Rs 1,183 crore during the same period.
RS Jalan, Managing Director, GHCL said, “Our performance during the quarter was influenced by various factors such as ongoing weakness in the global Soda Ash markets leading to oversupply situation, increased imports into India and reduction in energy and associated costs. While the global Soda ash markets continue to remain soft, we have started to observe early signs of demand recovery in the domestic market, especially in the conventional end-user sectors coupled with the demand from the new sunrise industries of solar glass, lithium and sodium bicarbonate.”
“Going forward, we have ambitious growth plans in order to maintain this trajectory. These include Greenfield expansion, vacuum salt project, product basket expansion and salt yield improvement among others. We are certain that once completed, these projects will accelerate our growth momentum and position us among the top-tier industry leaders,” Jalan further went on to say.
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