RCF Stock Climbs 8% Following ₹1,000 Crore Order to L&T for New Plant – Full Details Here!RCF Stock Climbs 8% Following ₹1,000 Crore Order to L&T for New Plant – Full Details Here!

Shares of Rashtriya Chemicals and Fertilizers (RCF) rose by 8% following the company’s board approval for a ₹1,000 crore order awarded to Larsen & Toubro (L&T) to establish a new fertiliser plant. This development reflects RCF’s commitment to expanding its production capacity.

The board sanctioned a purchase order for a 1200 MTPD Complex Fertilizer plant on a Lump Sum Turnkey (LSTK) basis at RCF’s Thal facility. The project, valued at ₹1,000.27 crore (excluding GST), is scheduled for completion within 27 months, enhancing RCF’s operational capabilities.

Also Read : Easy Trip Planners to Review Bonus Share Issuance on October 14 – What This Means

In the first quarter of FY25, RCF reported an 8.73% increase in revenue, reaching ₹4,396 crore compared to ₹4,042.9 crore in the same period last year. However, the net profit witnessed a significant decline of 84.21%, falling to ₹10.7 crore from ₹67.9 crore.

The company’s operating profit also decreased, dropping to ₹146 crore from ₹161 crore, indicating challenges despite revenue growth. This highlights the pressures RCF is facing as it navigates the competitive fertiliser market.

RCF, a Government of India Undertaking, holds a significant position in the fertiliser and chemical manufacturing sector, with approximately 75% of its equity owned by the government. The company recently achieved Navratna status in August 2023, becoming the first in its sector to do so.

Also Read : Gold Drops ₹750, Silver Falls ₹1,900 Today—Find Out Why!

As of now, RCF shares traded at ₹183 apiece, reflecting a 7% increase on the NSE. The company’s stock has provided impressive annual returns of 49%, alongside a modest 9% gain year-to-date in 2024, showcasing its market resilience.