NATIONAL FERTILZERS LTD

National Fertilizers Ltd (NFL) is a Mini ratna PSU and producer of chemical fertilizers, organic fertilizers and industrial chemicals. The stock price hit a new 52-week high at Rs.35.55 on the back of its robust turnaround performance for Q4. For Q4FY16, the company posted a net profit of Rs.31 crore v/s loss of Rs.101 crore in previous Q4. The company stated that it clocked the highest very production - 9.76 lakh metric tonne v/s 7.61 lakh metric tonne, up 28% sequentially, with lowest energy consumption for urea.

The gas pooling policy initiated by the Govt also helped this turnaround. The gas pooling, more than reduction in fuel cost, helped bring down outstanding subsidy bill which resulted in interest gain – its interest cost was down 33% (YoY) at Rs.110 crore. Capacity utilization of 118% also helped ramp up production.

For FY16, the company posted a 9% (YoY) drop in consolidated net sales at Rs.7766 crore. Interest outgo for the year was down 24% at Rs.228 crore and borrowings came down 22% at Rs.5277 crore. The company had a MAT credit of Rs.71 crore. NFL ended Fy16 with a net profit of Rs.197 crore, up over 7.5 times. Equity stands at Rs.490 crore and Govt holds 89.71% stake – it is looking to divest 15% this fiscal. Reserves is at Rs.1116 crore but unlike most other PSUs, cash is very low at Rs.8 crore.