GNFC

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

March 10 - By Ira Dugal, Editor Financial News, with global Reuters staff

The Iran war’s effect on business is growing rather dramatically. From gas curbs to export delays, Indian companies are already feeling the strain. And so are financial markets, forcing a step-up in intervention from the central bank.

From fertiliser producers, to makers of ceramics to crafters of jewellery, a broad swathe of Indian companies has found itself in the cross-hairs of the war. That's our focus this week. Are there as-yet unanticipated ways in which the Middle East crisis could hit Indian firms? Write to me at [email protected].

And foreign outflows from Indian IT stocks hit a seven-month high in February. Scroll down for more on that.

THIS WEEK IN ASIA

Iran defies Trump, elevates Khamenei's son Mojtaba as successor

China says US talks vital as Trump targets Beijing's key partners

Airlines begin to hike fares due to higher fuel prices, shares stabilise

US pressing Sri Lanka not to repatriate Iranian crew and survivors from sunken ship, memo says

Vietnam eyes new 5G deals with Chinese tech firms, sources say, despite US warnings

SHORTAGES, SUPPLY DISRUPTIONS, PRICE HIKES

The U.S.-Israel war with Iran, now into its second week, is casting its shadow on businesses across the world, including India's.

The first point of impact has been higher oil prices - which rose above $110 per barrel but slid on Tuesday as U.S. President Donald Trump's comments raised hopes of an end to the war. But disruption to trade through the Strait of Hormuz and stoppage of gas supplies are also having a more immediate impact on Indian businesses.

Over the past week, GAIL GAIL.NS and IOC IOC.NS restricted gas supplies to industrial customers after Qatar halted production of liquefied natural gas and shipments were disrupted.

India, the world's fourth-largest buyer of LNG, relies heavily on the Middle East for its imports.

The gas shortages will likely hit the fertiliser sector quickly, where some manufacturers such as Gujarat Narmada Valley Fertilizers GNFC.NS have already announced planned production cuts.

Similar cuts are being seen across the region, which could potentially curb supplies just as farmers gear up for their major cereal planting season, Reuters' Naveen Thukral reported.

India imports about a third of its fertiliser needs. The government, however, was confident supplies will be adequate and added it is taking steps to diversify imports beyond the crisis-hit Middle East.

The ceramic and tiles industry has been another early casualty of fuel-supply shortages, with a number of firms planning on paring production. And restaurants have taken to social media to complain about a shortage of industrial-sized gas cylinders.

Alongside, businesses that export to the Middle East are starting to warn about delays in shipments.

India's gems and jewellery exports, as well as imports of rough diamonds from the United Arab Emirates, are being impacted because of widespread flight cancellations and airspace closures, Reuters' Rajendra Jadhav reported.

Jindal Stainless JIST.NS, India's biggest stainless steel producer, has warned of shipment delays.

India is not alone in feeling the impact, with many global businesses under pressure. Read here for an assessment of the global impact.

Prices are starting to be impacted as well, with India raising cooking gas prices, even though the government has ruled out a hike in retail costs of petrol and diesel for now.

The one silver lining is that interest rates may not rise immediately as production cuts due to shortages of fuel-based raw material and disruptions to exports may mean a quicker hit to India's growth than to inflation.

Read that analysis here.

In a scenario where oil prices average $120 per barrel in financial year 2026-27, inflation may rise to 4.8% while growth may slip to 6.2% from a currently estimated 7%, said Soumya Kanti Ghosh, chief economist at State Bank of India, the country's largest bank.

STEPPING UP INTERVENTION

With no quick resolution in sight and financial markets jittery, India's central bank has stepped up intervention.

It sold about $12 billion from its foreign exchange reserves to steady the rupee, which fell to a record low below 92 against the dollar this week.

It also bought bonds via the secondary markets and announced purchases of another 1 trillion rupees over the next week, to keep liquidity comfortable and interest rates in check.

The government too has activated contingency measures at ports to ensure additional storage facilities for exports bound for the Middle East that may be stuck or returning midway due to a lack of safe transit.

"Risk-off sentiments will keep the Indian rupee under pressure, while the RBI intervenes judiciously, balancing pressures on FX reserves and the need to maintain banking system liquidity," Kotak Institutional Equities said in a note.

MARKET MATTERS

Indian IT stocks fell the most in February since the global financial crisis as foreign selling hit its highest in seven months on concerns about the impact artificial intelligence models will have on the software business, data released on Friday showed.

Foreign portfolio investors sold IT stocks worth 169.49 billion rupees ($1.85 billion) last month, triggering a 19.5% drop in the IT index .NIFTYIT, its worst monthly performance since September 2008, when the global financial crisis upended equity markets.

Read here for more.

THIS WEEK'S MUST-READ

The southern Indian state of Karnataka, home to the tech hub of Bengaluru, banned on Friday the use of social media by those under the age of 16.

Read here for more on the decision.

Karnataka became the first Indian state to implement a ban even though a wider debate in the country kicked off after an annual economic document from the government's chief economic adviser earlier this year said that India should draft policies on age-based access limits to tackle "digital addiction".

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

March 6 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• ALLOCATION OF RLNG QUANTITIES TO GNFC UNDER SUPPLY AGREEMENT RESTRICTED TO 60% OF DCQ

• THIS WILL HAVE AN IMPACT ON PRODUCTION OF NEEM UREA

Source text: ID:nnAZN4SK0EK

Further company coverage: GNFC.NS

(([email protected];;))

** Shares of Gujarat Narmada Valley Fertilizers & Chemicals GNFC.NS fall 7.63% to 503.4 rupees

** Fertilizers and chemical maker's June quarter consolidated net profit down by ~30% to 830 million rupees ($9.46 million), consolidated revenue declines 20%

** On course to record the lowest intraday level in 6 months

** Co says lower volume availability has affected the revenue for fertilizer and chemical segments

** More than 1.7 million shares traded, 4.7x vs 30-day avg

** YTD, stock is down 11.2%

($1 = 87.7525 Indian rupees)

(Reporting by Urvi Dugar)

(([email protected];))

** Shares of Gujarat Narmada Valley Fertilizers & Chemicals GNFC.NS rise 6.6% to 547 rupees

** Co posts a 62.3% Y/Y rise Q4 consol net profit to 2.11 billion rupees ($24.83 million)

** GNFC results helped by a decline in raw material costs and improved chemical segment performance

** Over 3.4 mln shares traded, 5.6x 30-day moving average

** Stock down 4% YTD

($1 = 84.9930 Indian rupees)

(Reporting by Rudra Pratap Singh in Bengaluru)

(([email protected]))

May 23 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD MARCH-QUARTER CONSOL NET PROFIT 2.11 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 20.55 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD - DIVIDEND OF 18 RUPEES PER SHARE

Source text: [ID:]

Further company coverage: GNFC.NS

(([email protected];))

March 24 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• AWARDS CONTRACT TO TKUIPL FOR WEAK NITRIC ACID-III PLANT

Source text: ID:nBSE56LGNv

Further company coverage: GNFC.NS

(([email protected];))

Feb 14 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS DEC-QUARTER CONSOL NET PROFIT 1.63 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 18.99 BILLION RUPEES

Further company coverage: GNFC.NS

(([email protected];))

Nov 20 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS - ENTERED INTO A MOU WITH INEOS ACETYLS INTERNATIONAL

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS - FORMS JV WITH INEOS ACETYLS TO RUN ACETIC ACID UNIT

Further company coverage: GNFC.NS

(([email protected];))

Nov 13 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS SEPT-QUARTER CONSOL NET PROFIT 1.02 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS SEPT-QUARTER CONSOL REVENUE FROM OPERATIONS 19.17 BILLION RUPEES

Further company coverage: GNFC.NS

(([email protected];))

Aug 13 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• JUNE-QUARTER CONSOL NET PROFIT 1.18 BILLION RUPEES

• JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 20.21 BILLION RUPEES

Source text for Eikon: ID:nBSEQFBZ

Further company coverage: GNFC.NS

(([email protected];))

May 28 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD MARCH-QUARTER CONSOL PROFIT 1.30 BILLION RUPEES VERSUS 3.36 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 21.10 BILLION RUPEES VERSUS 22.71 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD - DIVIDEND OF 16.5 RUPEES PER SHARE

Source text for Eikon: ID:nBSEbG3NWf

Further company coverage: GNFC.NS

(([email protected];))

** Shares of Gujarat Narmada Valley Fertilizers & Chemicals GNFC.NS down as much as 5.4% to 663.05 rupees

** The fertilizers and chemicals maker reported a nearly 70.3% fall in its Q3 consolidated net profit, and rev from ops fell 22% year-on-year

** Stock on track for a second consecutive session of losses, if trend holds

** More than 1.6 mln shares change hands, 1.4x the 30-day avg

** Stock down 8.1% so far this year

(Reporting by Navamya Ganesh Acharya in Bengaluru)

(([email protected]; +91 8805175330 ;))

Feb 7 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS DEC-QUARTER CONSOL NET PROFIT 970 MILLION RUPEES VERSUS PROFIT 3.26 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 20.88 BILLION RUPEES VERSUS 26.73 BILLION RUPEES

Source text for Eikon: ID:nBSE2HLtd1

Further company coverage: GNFC.NS

(([email protected];))

Nov 8 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• INDIA'S GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD SEPT-QUARTER CONSOL NET PROFIT 1.82 BILLION RUPEES VERSUS 2.38 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LTD SEPT-QUARTER CONSOL REVENUE FROM OPERATIONS 20.8 BILLION RUPEES VERSUS 25.87 BILLION RUPEES

Source text for Eikon: ID:nNSE8P9mRN

Further company coverage: GNFC.NS

(([email protected];))

Aug 7 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• INDIA'S GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS JUNE-QUARTER CONSOL NET PROFIT 880 MILLION RUPEES VERSUS 5.72 BILLION RUPEES

• GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 16.52 BILLION RUPEES VERSUS 26.96 BILLION RUPEES

• SHARES DOWN 3%

Source text for Eikon: ID:nBSE9S7Fft

Further company coverage: GNFC.NS

(([email protected];))

Aug 1 (Reuters) - Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS:

• - VIPUL MITTRA CEASED TO BE CHAIRMAN OF CO UPON SUPERANNUATION FROM SERVICES OF GOVERNMENT OF GUJARAT

Source text for Eikon: ID:nBSEZptkx

Further company coverage: GNFC.NS

(([email protected];))

BENGALURU, May 18 (Reuters) - India's Gujarat Narmada Valley Fertilizers & Chemicals Ltd GNFC.NS reported a nearly 48% fall in quarterly profit on Thursday, hit by weak demand in the agriculture sector.

Consolidated net profit fell to 3.36 billion rupees ($41.09 million) in the quarter ended March 31, from 6.43 billion rupees a year ago.

Fertilizer chemical manufacturers have seen their profit squeezed due to lower demand in a seasonally weak quarter, even as they incurred expenses in maintaining surplus inventory.

Some analysts have also warned that rising concerns tied to the El-Niño weather pattern could hurt businesses in the agriculture sector.

Earlier this week, Gujarat Narmada's competitors Deepak Fertilisers and Petrochemicals DPFE.NS and Coromandel International CORF.NS also reported a fall in their quarterly profits due to lower sales.

The state-owned company saw a 3.2% drop in its fertilizer segment revenue and a 23.4% fall in its chemicals business. This hit the company's revenue from operations, which fell 18.1%.

"The Bharuch complex underwent annual shutdown from the last week of March, which had some volume related impacts in the fourth quarter apart from wage revision accruals on year-on-year basis," said Managing Director Pankaj Joshi.

Shares of the company closed 8% lower on Thursday ahead of the results.

($1 = 81.78 Indian rupees)

(Reporting by Biplob Kumar Das in Bengaluru; Editing by Shailesh Kuber)

(([email protected]; 9101861583;))

** Shares of most Gujarat State public sector undertakings jumped on state govt policies for dividend, buy back, bonus and splitting of shares

** Barring Gujarat Gas Ltd GGAS.NS, all the other six listed state PSUs of Gujarat surged between 7% and 20%

** Gujarat Industries Power Ltd GJIP.NS up 20%; Gujarat State Fertilisers and Chemicals Ltd GSFC.NS and Gujarat Mineral Development Corp Ltd GMDC.NS rise over 15%

** Other state PSUs up between 7% and 10%

** Uptick after the state on Tuesday mandates 30% of profit after tax or 5% or net worth as the minimum threshold of dividend declared for shareholders

** Every state PSU with net worth of 20 bln rupees and cash and bank balance of 10 bln rupees asked to exercise the option of share buyback

** PSUs mandated to split shares when market price of the company's shares exceeds 50 times of its value

** PSUs to issue bonus shares if their defined reserves and surplus is equal to or more than 10 times of its paid up share capital

** "There is more clarity to minority shareholders and scope to improve governance," says Nilesh Shah, managing director at Kotak Mahindra Asset Management

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463))