Mumbai: Rashtriya Chemicals and Fertilisers Ltd (RCF), a prominent public-sector enterprise, reported a significant 24% decline in its consolidated net profit for the fourth quarter of the 2024-25 fiscal year. The company’s net profit for the January-March 2025 period stood at Rs 72.46 crore, compared to Rs 95.24 crore in the same period last year, according to a regulatory filing made on Tuesday.
Declining Revenue and Operating Profit
RCF’s total income for the fourth quarter also saw a dip of 3.86%, falling to Rs 3,729.67 crore from Rs 3,879.65 crore during the same period last year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter contracted by 8.6% to Rs 178.5 crore, compared to Rs 195.4 crore in the previous year. Consequently, the company’s EBITDA margin narrowed to 4.8% from 5% a year ago.
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The company cited pressure on pricing and input cost volatility as the primary factors that impacted its operating margins and led to the decline in revenue and operating profit.
Full-Year Financial Performance
Despite the challenges in the fourth quarter, RCF reported a 7.62% increase in net profit for the entire 2024-25 fiscal year, which rose to Rs 242.45 crore, compared to Rs 225.28 crore in the previous fiscal year.
However, total income remained flat at Rs 16,933.64 crore, slightly declining from Rs 16,981.31 crore in the previous year.
Dividend Announcement
The company’s Board of Directors also declared a final dividend of Rs 1.32 per share for the 2024-25 fiscal year (13.2% on a face value of Rs 10 per share). The dividend is subject to approval by shareholders at the upcoming Annual General Meeting (AGM) and is expected to be paid within 30 days of declaration.
Stock Market Performance
RCF’s shares closed at Rs 156.45 on Tuesday, just ahead of the earnings announcement. The company is among the largest producers of fertilisers and industrial chemicals in India, with multiple manufacturing units across the country.
Outlook and Challenges
RCF attributed the decline in earnings to the ongoing challenges in the market, particularly pricing pressures and volatile input costs, which continue to weigh on its profitability. The company will likely continue to face similar challenges in the near term as it works to stabilize its operations.
About RCF
Rashtriya Chemicals and Fertilisers Ltd (RCF) is a leading Indian public sector undertaking (PSU) engaged in the manufacturing and marketing of fertilizers and industrial chemicals. Owned by the Government of India, RCF is headquartered in Mumbai and operates two units, one at Trombay and another at Thal. The company produces a wide range of products, including neem urea, complex fertilizers, bio-fertilizers, and various industrial chemicals.