GNFC hits 52-week high on strong Q3 results

The stock up 5% at Rs 85 after the company posted profit of Rs 86 crore in December quarter against loss of Rs 46 crore

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) is trading higher by 5% to Rs 85 on the BSE in an otherwise subdued market after the company reported profit of Rs 86 crore for the quarter ended December 31, 2015 (Q3FY16) against loss of Rs 46 crore in the same quarter year ago.

Lower raw material cost and operational efficiency aided earnings in the quarter.

Read more from our special coverage on "MARKETS"

• Auto stocks drive markets higher; Tata Motors up 3%
• Weak opening seen on mixed Asian cues; Adani Ports in focus
• Should you sell stocks in May? No, say analysts
• Markets trim losses; Nifty reclaims 7,800
• Indian market will see a de-rating in near term: Mahesh Nandurkar

 

Total income from operations however declined 4% to Rs 1,101 crore against Rs 1,142 crore in the corresponding quarter of previous fiscal. Raw material cost reduced 18% at Rs 504 crore on year on year basis.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 13.56% from 5.67%.

For the first nine months (April to December) of current fiscal, the company posted net profit of Rs 127 crore against loss of Rs 127 crore in the same period previous fiscal.

The stock hit a 52-week high of Rs 88.95 in early morning trade on the BSE. It rallied 43% in past three months as compared to 9% decline in the S&P BSE Sensex.

Till 11:21 a.m. a combined 926,663 shares changed hands against an average sub 200,000 shares that were traded daily in past two weeks on the NSE and BSE.