GHCL Limited reported a mixed performance for Q4 FY24, with a notable recovery in revenue and EBITDA compared to the previous quarter. However, year-on-year comparisons reveal significant declines, primarily due to increased imports affecting pricing. Management remains optimistic about future growth driven by operational efficiencies and market recovery.

Mixed performance with sequential recovery.

Management Tone: Cautiously optimistic

Performance Overview

Business Progress

Future Outlook

Financial Highlights
PAT: ₹124 crores (down 50.6% YoY, up 24% QoQ)
EBITDA: ₹201 crores (down 45.9% YoY, up 21.8% QoQ)
Revenue: ₹840 crores (down 26.3% YoY, up 3.3% QoQ)

Operational Excellence
Revenue increased sequentially due to higher volumes.
EBITDA margin improved sequentially due to reduced input costs.
Net debt-free status maintained with a cash surplus of ₹400 crores.

Key Achievements
Progress on greenfield soda ash project expected to receive final approval soon.
Vacuum salt project is on track as planned.
Installation of 6.7 megawatts of renewable energy completed.

Strategic Updates
Conceiving a new bromine project at existing salt works.
Sodium bicarbonate capacity increased to enhance sales and margins.

Future Guidance
Expecting improved demand in FY25 and FY26 with no major capacity additions globally.
Management believes growth will stabilize around 2.5% in the coming years.

Strategic Priorities
Enhancing production and cost competitiveness.
Focusing on sustainability and renewable energy initiatives.

Risk Factors
Geopolitical uncertainties affecting global supply chains.
Continued pressure from oversupply in the soda ash market.