GNFC hopeful of keeping same level of growth in 2nd half of FY17

GNFC, the company which operates in the industrial chemicals, fertilizers and information technology products space, reported a total income of Rs 1,461 crore, up 19 percent as against Rs 1,229 crore in the last fiscal year.In an interview with CNBC-TV18, Rajiv Kumar Gupta, MD of the company, said in the second quarter of this fiscal year the company declared a profit of Rs 228 crore. This is the highest-ever single profit declared by the company since its inception in 1982.He said this quarterly profit is even more than the entire year's profit last year. For the first half of this financial year, company has declared a profit of Rs 278 crore which is higher than the profit declared in the first half of last financial year. He further said the chemical segment performed better and remained profitable at Rs 193 crore, 141 percent higher as against the same quarter last year. In the fertilizer segment too, the company declared a profit of Rs 44 crore as against Rs 23 crore in the same quarter last year.He remained positive on maintaining the same level of growth in the second half. Below is the verbatim transcript of Rajiv Kumar Gupta’s interview with Latha Venkatesh and Reema Tendulkar on CNBC-TV18.Latha: Our analysts tell us that prices of Toluene diisocyanate (TDI) have started falling, is that right? A: No, I will say the contrary. The prices of TDI in last 15 days have almost doubled. Now, it is only a fluctuation beyond USD 4,000, up to USD 4,500. So, sometimes it is quoted as per the demand and production in the world scenario at USD 4,300, sometimes USD 4,500 and sometimes USD 4,200. So, it is not a correct statement to say that the TDI prices have started falling. TDI prices have stabilised after peaking; now that is a better statement to make. Latha: How is this cash demonetisation impacting activity on the ground? We just had a two wheeler and a four wheeler dealer tell us that sales have ground to a halt, cement dealers tell us much the same, what are your dealers telling you?A: We are a government controlled company. So, cash demonetisation as far as our operations, sales and marketing and commercial operations are concerned has no impact at all. Latha: It doesn’t have an impact on you; I am asking you what are your dealers telling you? A: Our dealers have not given us any negative feedback.