Gujarat Alkalies Q1 net profit falls 30% to Rs379m

NEW DELHI (ICIS news)--India’s Gujarat Alkalies and Chemicals Ltd (GACL) posted a 30.4% year-on-year drop in first-quarter net profit to Indian rupees (Rs) 379.1m ($7.9m), down from Rs544.6m in the same period in 2008, due the global economic slowdown, the company said on Monday.

Operating profit during the period that ended 30 June declined by 26.3% from Rs818.3m to Rs602.4m, while net sales decreased by 4.6% from Rs3.44bn to Rs3.28bn.

In an attempt to increase sales, GACL said it was outsourcing the production of some chemicals.

The products to be outsourced included calcium chloride, bleaching powder and toluene-based chemicals such as monochloroacetic acid (MCAA).

The company said it planned to commission its Rs26bn multi-product project at Dahej, in Gujarat state, by the end of the 2012-2013 financial year.

The project would comprise plants to manufacture polyols, phenol, caustic soda, chlorine, hydrogen peroxide, hydrazine and a captive power station.

GACL also said it was acquiring 400 acres at Dahej for its joint venture with Gujarat State Fertilizers & Chemicals and Gujarat Narmada Valley Fertilizers Co to set up an Rs100bn petrochemical plant.

GACL said engineering activities were moving forward at its 200,000 tonne/year chloromethanes joint venture with Switzerland’s Dow Europe GmbH.

The Dow-GACL SolVenture Ltd is scheduled to commission its Rs6bn plant at Dahej in 2011.

GACL operates manufacturing complexes at Dahej and Baroda.

($1 = Rs48.09)