Gujarat Alkalies & Chemicals Ltd

Gujarat Alkalies and Chemicals Limited (GACL) was incur porated on 29th March, 1973 in the
State of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC), a wholly owned
company of Govt. of Gujarat, as a Core Promoter.

GACL has two units located at Vadodara and Dahej ,both in the State of Gujarat. It has integrated
manufacturing facilities for Caustic Soda, Chlorine, Hydrogen Gas, Hydrochloric Acid,
Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide, Potassium
Carbonate, Sodium Cyanide, Sodium Ferrocyanide.

❖ The company Utilizing alternate sources of energy… The Company has installed total Wind Power
capacity of 171.45 MW. In addition, the Company had taken up a 15 MW Solar Power Project for captive
use and to meet the Solar Renewable Purchase Obligations.

❖ MARKET both in domestic and international

❖ The Company has formed a Joint Venture with National Aluminium Company Ltd. for putting up a new
800 TPD Caustic Soda Plant integrated with a 130 MW Coal Based Power Plant at Dahej .

❖ The company has joint venture with GACL-NALCO ALKALIES & CHEMICALS Pvt.LTD

❖ BOARD OF DIRECTOR (Gujarat)

1. P K Gera Managing Director
2. Arvind Mukim Director
3. M K Das Director
4. j N Godbole Independent Director
5. Rajiv I Modi Independent Director
6. Pallavi S Shroff Independent Director
7. Vasuben Trivedi Independent Director
8. Rajiv Lochan Jain Independent Director

❖ Main Product/Servises to total turnover company

1. Caustic Soda Lye 37.51%
2. Caustic Soda Flakes 18.38%
3. Hydrgen Peroxide Group 10.95%

❖ The Company is a Member of :

1. Alkali Manufactures Association of India, Delhi
2. Indian Chemical Council, Mumbai
3. Gujarat Chemical Association, Ahmedabad
4. Society for Clean Environment, Vadodara
5. National Safety Council, Mumbai
6. Gujarat Safety Council, Vadodara
7. Federation of Gujarat Industries, Vadodara
DAHAI
8. Exim Club, Vadodara
9. CHEMEXCIL, Mumbai
10. Gujarat Employers’ Organization, Vadodara
Vadodara
 Gujarat Alkalies & Chemicals Ltd

❖ Company’s Products are used by various industries

Textile, Pulp & Paper, Soaps & Detergents, Alumina, Water Treatment, Petroleum, Plastics,
Fertilizers, Pharmaceuticals, Agrochemicals, Plant Protection, Refrigeration gasws, epoxy etc.

❖ Export it’s World class Product -

Flakes, Caustic Soda Prills, EXPORT COUNTRIES

Potassium Carbonate, Potassium
Hydroxide Flakes, Hydrogen Peroxide,
Liquid Chlorine,Phosphoric Acid,
Aluminium Chloride,PAC, Hydrochloric Acid

❖ Expenditure incurred on Research and

development

❖ Total Foreign Exchange Earned and used

During the FY(2017-18)

Technology
Imported from
GERMANY (import)
German technology
❖ Remuneration / ratio to Board of Director through Indian
subsidiary (M/s
Name of Director Remuneration Ratio of Comparison of the
Thyessenkrupp
FY (2017-18) Remuneration remuneration
Industrial Solution
(Rs.in.Lakhs) Profit BeforeTax increased Pvt. Ltd.
by 96.51%and Profit After
Tax increasedby 73.65% in
P K Gera (Managing director) 29.72 2.53 times
Financial Year 2017-18.
H B Patel (CFO) 38.71 3.29 times

❖ SWOT ANALYSIS
Strengths Weaknesses Opportunities Risk

USE OF RENEWABLE SOURCE OF ENERGY increase in power rates Green technology Foerign Currecy Risk
eco-friendly chemical company adding new products
strong network for marketing /distribution competes with manufacturers in China and Middle East
proximity to major raw material source and markets
Export and Import market both

❖ Company listed on both NSEI and BSE .

 Gujarat Alkalies & Chemicals Ltd

Financial Details
Rs.in Crore

Particulars March 18 March 17 March 16 March 15 March 14

Total income 2560.25 2126.13 2041.68 1997.07 1926.33
EBITA 892.44 505.54 380.07 322.87 404.74
Profit After Tax (PAT) 535.02 308.10 219.89 227.86 185.20

❖ Sales growth of the company past 10 years is not good.

10
The company sales grow in 10 years is only 7%
CAGR 3 years 5 years years
The Average Net Profit margin of the company past 10
years is 13% sales 11% 7% 7%
The Average tax payed by the Company Proportional to net profit 56% 30% 12%
Sale in Past 10 Years is 16% net profit
margin 41% 22% 5%

3,000 40%

2,500 30%

2,000 20%
Axis Title

1,500 10%

1,000 0%

500 -10%

0 -20%
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
sales 1,388 1,278 1,435 1,711 1,815 1,896 1,948 1,995 2,070 2,455
NET profit 192 172 114 154 235 185 228 220 308 535
NPM, 14% 13% 8% 9% 13% 10% 12% 11% 15% 22%
tax 26% -17% 10% 31% 30% 25% -6% 16% 19% 29%

Other investments
_ GIPCL, GCPTCL, Gujarat Guardian Ltd., Bhavnagar Energy Company Ltd. and GACL-NALCO Alkalies &
Chemicals Pvt. Ltd (JV Company by GACL 60% & NALCO 40%).
 Gujarat Alkalies & Chemicals Ltd

Debt to equity ratio :- of the company is not good because of high long term borrowing from the
financial year 2015-16 . From the FY 2015-16 long term borrowing of the company is consistently
increasing

Debt-to-equity Ratio Past 5 Years

4,500.00 0.1
4,000.00
3,500.00 0.08
3,000.00
0.06
2,500.00
2,000.00
0.04
1,500.00
1,000.00 0.02
500.00
0.00 0
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

total equity 1,963.73 2,136.69 2,928.10 3,356.78 3,822.63
total debt 155.89 94.9 225.22 291.18 234.15
debt-to-equity ratio 0.07938464 0.044414492 0.076916772 0.086743844 0.06125364

❖ Net Cash Flow From Operation is more than Net profit of 10 years it means that the company sale
it’s goods and services in advance Payment . This data also show that the MOAT of the goods and
services is good in the market as compare to the other competitor

1,
234
2, 3,
334 41%
4,
59% 515
503
NET PROFIT1 2343
2 423 535
338 286 348 242 295 201
CRORE 192 193 235 185 228 220 308
172 114 154

Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
NET CASH FLOW FROM
OPERATION 3344 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
CRORE CFO 338 286 193 348 423 242 295 201 503 515
PAT 192 172 114 154 235 185 228 220 308 535
 Gujarat Alkalies & Chemicals Ltd

❖ Earning per share:- of the company is increasing from past four years , it means that the growth of
the company is increasing .

15-Mar 16-Mar 17-Mar Mar-18

EPS 44.38 44.57 57.06 94.06
PRICE TO
EARNING 3.605228 3.634732 7.080266 5.804805
t

❖ INTEREST COVERAGE RATIO :- GACL (66.36) has interest coverage ratio it indicates strong solvency
and easier debt serives ,higher ICR lets a company borrow money at competitive interest rates and
better loan terms.
❖ Revenue Structure :-

TOTAL REVENUE Crore 2560.25

FOREIGN EXCHANGE EARNED INFLOW Rupees lakhs 31530.97
FOREIGN EXCHANGE EARNED OUTFLOW Rupees lakhs 18751.61

❖ Current ratio:- (1.54) Company has 5,250 crores total assets out of total assets company has
1469.05 lakh current assets and total liabilities of 5,250 crore , current liabilities of 915.57lakhs
❖ Quick ratio:- (1.26)
❖ Price to book value :- (1.02)
❖ 1$ test :- (9.6) 31530.97
lakh
FOREIGN
rupees
EXCHANGE
EARNED
OUTFLOW
TOTAL REVENUE
18751.61 lakh FOREIGN
rupees EXCHANGE
EARNED
INFLOW
2560.25 Crore
rupees

Promoter/Director Holding

Category Shareholders Percentage (%) Physical Holding Electronic Holding Total share
Promoters 7 0.01 0 3,39,86,310 3,39,86,310
Directors & their relatives 0 0 0 0
 Gujarat Alkalies & Chemicals Ltd

❖ Movement of National Stock Exchange of INDIA (NSEI) and GACL :- This indicates that the
company is growing and it helps in GDP growth .

PRICE FROM JANUARY TO DECEMBER

FY 2018-19
800 14000
700 12000
600 10000
500
8000
400
6000
300
200 4000

100 2000
0 0

NSEI MOVEMENT GACL MOVEMENT

❖ Inflation movement and GACL Return movement

jan to oct Data FY 2018-19

100%

80%

60%

40%

20%

0%
1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct
-20%

-40%

-60%

-80%

inflation Gacl returns

 Gujarat Alkalies & Chemicals Ltd

Sr. No Particulars Financial Year 2017-18

1 Paid up Capital (INR) RS.73.44
2 Total Turnover (INR) RS.2619.64
3 Total Profit After Taxes (INR) RS.535.02
4 Total Spending on Corporate Social Responsibility RS.13.66* (2.55%)PAT
A. Promoting education
B. Intervention for Special Children.
C. Preventive Healthcare,Hygine and Sanitaion.
D. Promotion of Art, Culture and Heritage.

E. Developmental activities at Daheej, vagra.

F . Promotion of Livelihood generation

Ideal ratio
Rating out of 5
1. 15%
Sales growth past 10 years 2.5 7% 2. 7%
1

Net Profit Margin 5 13%

2

3. >3
Interest coverage ratio 5 66.36
3

4. 35%
Tax payment past 10 years 3 16% 5. <0.2
4

Debt-to-equity-ratio 1 0.061
6. >1
5

Quick ratio 1 5 1.26

7. 2:1
6

Current ratio 5 1.54

7

8. <20
Price to earning ratio 2.5 5.80
8

9. >1.5
Price to book value 5 1.02
9

10. <1
5 9.66
11 10

1$ test
Moat 5

0 1 2 3 4 5