State-owned Rashtriya Chemicals and Fertilizers Limited (RCF) on Wednesday (June 25) said it is facing a financial setback of approximately ₹204.14 crore after the Department of Fertilizers (DoF) declined to recognise the cost of EPMC gas and spot gas used for its Trombay urea operations during financial years 2021-22 and 2022-23.
“…we hereby inform you that the Department of Fertilizers (DoF), vide letter no.12022/2/2024-UPP (E.38249) dated June 25, 2025, has not accepted the request of the company for recognition of EPMC gas/Spot gas procured for Urea operations for the production of Trombay Urea for the years 2021-22 and 2022-23,” according to a stock exchange filing.
The company said it had received a communication from the DoF rejecting its request for gas cost recognition under the gas pooling mechanism. The decision pertains specifically to gas procured for the production of urea at RCF’s Trombay plant.
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RCF stated that it is making another representation to the department, arguing that the non-recognition goes against the principles of the gas pooling policy.
Fourth quarter results
Net profit for the quarter ended March 31 fell 23.8% year-on-year to ₹73 crore, from ₹95.2 crore a year earlier. Revenue from operations declined nearly 4% to ₹3,729.7 crore, compared to ₹3,880 crore in the same period last year.
EBITDA dropped 8.6% to ₹178.5 crore, down from ₹195.4 crore, and the EBITDA margin narrowed to 4.8% from 5%. The company attributed the decline to pressure on pricing and input cost volatility, which weighed on operating margins.
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Shares of Rashtriya Chemicals and Fertilizers Ltd ended at ₹158.10, up by ₹1.60, or 1.02%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Jun 25, 2025 7:02 PM IST
