Financial and Operational Highlights
• Challenges in Industry:
• Reduced subsidy levels and margin pressures due to input cost discrepancies.
• Share Buyback:
• Completed buyback of shares, reducing share capital and increasing promoters' stake.
• Operational Impacts:
• Shutdown affected revenue and production, particularly in the TDI segment.
Financial Results
• Loss Reduction:
• Significant reduction in losses from TDI operations compared to the previous year.
• Power Costs:
• Increased from Rs. 340 crores in Q1 to Rs. 400 crores due to shutdown.
• Ammonia Production:
• 463,512 tons produced in the first nine months of FY24 (60:40 gas to oil-based).
• Margin Pressures:
• High input costs and lower selling prices; some price recovery noted in December.
• Fertilizer Segment:
• Urea continued to incur losses; NPK showed some profitability.
Production and Sales Figures
• Product Performance:
• Slight declines in WNA (324,000 tons) and CNA (105,000 tons) compared to the previous year.
• Sales for CNA approximately 37,500 tons.
• Margin Disappointments:
• Significant drop in ammonia prices affected sales realizations.
• Future Outlook:
• Cautious optimism for improved margins in FY25, dependent on stabilizing ammonia prices.
Strategic Initiatives
• Cost Management:
• Transitioning to coal-based power for TDI production could reduce costs significantly.
• Sales Strategy:
• Mix of fixed and variable pricing; dynamic pricing for most products.
• Natural Gas Procurement:
• On a spot basis, benefiting from recent price declines.
• Cash Reserves:
• Rs. 2,000 crore in cash; consistent dividend payout planned.
Conclusion
• Acknowledgments:
• Ashwin Shah expressed gratitude to participants and organizers of the call.
• Outlook:
• Aimed for double-digit operating profit margins in FY25, with ongoing integration efforts to optimize product mix.

Market Environment
• Challenging conditions with margin pressures in fertilizers and chemicals.
• Good volume performance but lower realizations impacted margins.
Operational Highlights
• No shutdowns in Q2; successful commercialization of a new Concentrated Nitric Acid plant.
• Ammonia production utilizes an oil-based process; no plans to transition to gas-based systems.
Financial Performance
• Profits increased from the previous quarter, but year-on-year margins declined, especially in chemicals.
• Fertilizer business faced losses due to reduced government subsidies.
• Share buyback announced at a premium to recent prices.
Production and Sales
• Technical grade urea sales: 196,000 tons last year; projected 180,000 to 120,000 tons this year.
• TDI-I and TDI-II production improved; TDI-II capacity realization above 100%.
Challenges and Strategies
• Competing with cheaper imports due to differing raw material costs.
• Year-on-year revenue decline, but increase in other income from dividends and interest.
• Focus on adjusting production mixes; stable volume growth expected without new projects.
Capital Expenditure Plans
• INR 4,800 crores capex plan over five years with specific allocations.
• Provision of INR 85 crores due to subsidy reductions in complex fertilizers.
Shareholder Returns and Financial Strategies
• Dividend of INR 466 crores and buyback of INR 652.81 crores announced.
• Remaining funds allocated for capital expenditures and working capital.
Ongoing Projects
• Projects include a 4 MW solar power plant, coal-based cement power plant, and a 10 MW green hydrogen project.
• Significant revenue impacts from these projects expected beyond FY26.
Pricing and Market Dynamics
• Raw material prices stabilized; no significant price hikes for finished products since October 1.
• Potential price improvements for CNA and nitric acid anticipated due to rising ammonia prices.
Conclusion
• Management expressed gratitude to participants and emphasized ongoing engagement in addressing market challenges and opportunities.

Gujarat Narmada Valley Fertilizers & Chemicals Limited Conference Call Summary (May 22, 2023)
Financial Performance
• Turnover: INR 10,227 crores
• Profit Before Tax: INR 1,931 crores (second-highest profit)
• Capital Investment: Over INR 600 crores for a coal-based power plant
• Debt Status: Company is currently debt-free
Market Impact
• External Factors: War and China's lockdown affecting commodity prices and input costs
• Fertilizer Volumes: Lower urea volumes; better performance in chemical products
• Ammonia Prices: 66% decrease over the year
Production Insights
• Ammonia Production: 40% oil-based; total production at 679,000 tons
• WNA and CNA Production: 431,000 MTPA of WNA; sales increased from 107,000 to 115,000 tons year-over-year
• Future Demand: Expected growth in domestic market for WNA and CNA
Future Investments
• Capital Expenditure Plans: INR 2,000 crores over the next three years
• Projected Turnover Increase: INR 1,000 crores from polycarbonate production by FY26
Strategic Discussions
• Buyback Policy: Concerns raised about potential buyback below book value
• Cash Reserves: Current balance at INR 2,831 crores before dividends
• Green Hydrogen Project: In bidding phase, facing regulatory hurdles
Pricing and Market Dynamics
• Product Pricing: Stabilization of acetic acid prices; overall product prices expected to normalize
• Fertilizer Segment Challenges: Quarterly EBIT loss of INR 35-40 crores due to fixed costs and subsidy adjustments
Chemical Production
• Total Chemical Production: 763,000 tons sold
• Methanol Production: Dependent on natural gas prices
• TDI Production: TDI 2 at 64% capacity utilization; TDI 1 at 99%
Revenue Projections
• FY '24 Uncertainty: Due to fluctuating market conditions
• Ammonium Nitrate Segment: Contributes 20% to chemical sector's revenue
Conclusion
• Focus on Profitability: Need to improve utilization levels across products
• Gratitude Expressed: Thanks to participants and organizers for the call

Q3 FY '23 Earnings Conference Call Summary
Economic Environment
• Softening in input and output prices due to reduced war aggression.
• Union Budget focused on capital expenditure; minimal impact on corporate tax rates.
Production and Sales Performance
• Chemicals production increased by 24%; sales up by 18%.
• Fertilizers production and sales declined by 8% and 10%, respectively.
• Record revenues of INR 2,673 crores; profit before tax of INR 1,515 crores.
• Increased personnel costs and provisions for contingent liabilities.
Financial Highlights
• Significant cash flow generation of over INR 500 crores.
• Government subsidy allocation for fertilizers expected to increase to INR 2,50,000 crores.
Ammonia Production Insights
• Total ammonia production: 607,000 metric tons (353,000 from gas, 250,000 from oil).
• Capacity utilization at 155%.
TDI and Market Trends
• Bharuch complex profitable; Dahej complex not profitable (utilization at 130% and 67%).
• Recent decline in gas prices expected to positively impact financial results.
Capital Expenditure Projects
• Progress on polycarbonate and cracker projects; reports expected later in the year.
• Investments planned in green hydrogen and ammonia pending policy clearances.
Margin Concerns
• Declining margins attributed to increased top-line revenue, not absolute profit reductions.
• Specific chemicals like acetic acid and weak nitric acid saw price reductions.
Investment Strategy
• Board-approved policy prioritizing safety and yield; capital expenditure plans for FY 2025-26.
• Current investment of INR 1,600 crores in Gujarat State Finance Company.
Product Performance and Market Position
• AN melt is the top revenue generator; positive contribution from TDI products.
• Limited market share in nano-fertilizers; minimal adverse impact on urea market expected.
Contingent Liabilities and Import Trends
• Ongoing issues with the Department of Telecom; significant liabilities related to urea diversion and natural gas.
• Small percentage of domestic market catered to; significant imports affecting pricing.
Conclusion
• Invitation for further communication regarding investor meetings.
• Overall cautious optimism about future pricing stability and operational performance.