GHCL Q2 profit drops 32 pc to Rs 106.7 cr on lower sales

New Delhi, Nov 1 (PTI) GHCL Ltd on Saturday reported a 32 per cent decline in consolidated net profit to Rs 106.70 crore for the September quarter, impacted by lower sales and pricing pressure from cheap imports.

The company had posted a net profit of Rs 154.83 crore in the July-September period of the preceding 2024-25 fiscal year, according to a regulatory filing.

Total income declined to Rs 738.32 crore during the quarter under review, from Rs 810.23 crore in the year-ago period.

Expenses stood at Rs 593.79 crore as against Rs 613.90 crore in the corresponding quarter last year.

Commenting on the results, GHCL Ltd Managing Director R S Jalan said, "Our primary challenge has been the high volume of cheap imports, putting undeniable pressure on industry-wide pricing and our topline." However, the company's focused cost optimisation continues to protect healthy margins even in this difficult pricing environment, he added.

Jalan said the company is diversifying into bromine and vacuum salt, which are expected to begin contributing from this financial year, while emerging applications from solar glass are expected to accelerate from next year.

"Crucially, the proposed Anti-Dumping Duty (ADD) on Soda Ash, if approved, will restore a level-playing field and provide relief from predatory import pricing," he said.

The company has announced its third share buyback programme for Rs 300 crore under the tender offer route to create value for shareholders.

GHCL Ltd is the largest manufacturer of soda ash at a single location in the country, with an installed production capacity of 1.2 million tonnes per annum at its Sutrapada plant in Gujarat.

Soda ash is a major raw material for detergent, glass, solar glass and lithium battery industries. PTI LUX TRB TRB