Rashtriya Chemicals and Fertilizers record sales value of Rs100cr during April-May 2020

Date:06-22-2020

Rashtriya Chemicals and Fertilizers (RCF) registered sales of Rs100cr for its industrial chemical segment during the first two months of FY21.

Industrial chemical segment accounts for nearly 7% of the annual sales reported by the company in FY20. This is the lowest contribution from the segment, as compared to the previous three fiscal years. Hence, report of Rs100 sales within just two months can be considered as a strong value addition for the current financial year.

As per a press release on Press Information Bureau (PIB) dated–June 6, 2020, major industrial chemicals included Ammonium Nitrate (used in coal mining), Ammonium Bi-Carbonate (used food and tanneries) and Methyl Amines (used by pesticides, dyestuff and pharma).

RCF is the third largest fertilizer firm in terms of market cap. Its major segment is urea-based fertilizer but at times when economy is going ahead with slow pace, good contribution from all the business segments would certainly boost confidence of the investors. The company along with its quarterly number results also mentioned that it sees good monsoon distribution which would come handy for its growth going ahead.

The stock has already recovered nearly 90% from March 2020 lows, still with negative 30% returns for last year span.