GHCL, India’s leading chemical company, has reported a marked decrease in its revenue at ₹817 crore in the second quarter of fiscal 2024 (Q2 FY24), a stark contrast to the ₹1,183 crore recorded in the same quarter of the previous year. This also represents a significant drop from ₹1,029 crore in the first quarter of FY24.

The company's earnings before interest, taxes, depreciation, and amortisation (EBIDTA) also took a hit, coming in at ₹224 crore. This figure not only falls short of the ₹413 crore achieved in the second quarter of the last fiscal but also saw a decrease from the ₹310 crore in the preceding quarter of this fiscal, the company said in a press release.

GHCL's net profit for the quarter saw a steep decline of 51 per cent, settling at ₹143 crore. This was a substantial fall from ₹291 crore reported in the corresponding quarter of the previous fiscal, and down from ₹426 crore in the first quarter of FY24.

R S 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.

“We have consistently delivered value for our stakeholders through sustained expansion in earnings. 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.”

Fibre2Fashion News Desk (DP)

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