RCF awarded an order worth Rs 1,000.27 crore to Larsen & Toubro

Located in Mumbai, India, Rashtriya Chemicals & Fertilizers Ltd. is a central public sector enterprise that engages in the production of fertilizers and chemicals. The Ministry of Chemicals and Fertilizers is in charge of its administration, while the Government of India is the owner.

RCF placed a new fertilizer plant order with L&T

Following the board’s approval of an order placement with L&T for a new fertiliser plant valued at Rs. 1,000.27 crore, RCF shares saw an increase of over 8%. Through increased production capacity, the company hopes to support India’s agricultural sector in response to farmers’ increasing demand.

The company announced in a stock exchange filing that the Board of Directors of the Company had approved the placement of a purchase order on Larsen & Toubro Ltd. for the establishment of a 1200 MTPD (DAP basis) Complex Fertilizer plant on LSTK Basis at RCF, Thal.

In 27 months, L&T will finish the project

The plant will be constructed using lump-sum turn-key (LSTK) development, meaning that L&T will supervise all project management activities, including design, procurement, and construction. The contract will be completed in 27 months and has a value of Rs. 1,000.27 crore (GST excluded).

When the new plant is put into service, it will greatly increase RCF’s capacity to produce fertilizer, which is essential for satisfying the rising demand from Indian farmers. This action supports the company’s objective of guaranteeing a steady supply of fertilisers, thereby strengthening its position in India’s agricultural sector.

RCF expansion in Maharashtra

Two significant RCF production facilities are located in Thal, Maharashtra, and Trombay, Mumbai. These factories produce a wide variety of industrial chemicals as well as nitrogenous, phosphatic, and potassic fertilizers. The strategic initiatives of the company are aligned with its vision of upholding leadership in the fertiliser industry of India and guaranteeing sustainable growth via technological advancements and capacity expansion.

RCF Q1 Results

The producer of chemicals and fertilizers reported a net profit of Rs. 10.80 crore for the first quarter of fiscal 2025, an 84% decrease from the previous year. In comparison, the same quarter last year saw a profit of Rs. 67.79 crore.

Compared to the same period previous year, the company’s total income increased to Rs 4,396.06 crore from Rs 4,042.95 crore. Additionally, the costs rose from Rs 4,009.02 crore to Rs 4,409.93 crore.

RCF stock up more than 8% in intraday

The highest intraday price for RCF stock was Rs. 185.31 per share, a gain of over 8% today. As of right now, the stock is up 7% at Rs. 182.98 per share.Over the past year, RCF stock has increased by more than 40%, and year-to-date (YTD), it has increased by more than 16%. After declining for two months, the stock has gained 1% so far in October.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.