Deepak Fertilizers announces Q3 results


Driven by increase in volumes across acids, TAN and fertilizers, reports growth in revenues & net profit 

Consolidated Y-o-Y Growth

–          Revenue 50%

–          Profit After Tax 12% 

Mumbai, February 10, 2018:  Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) today announced its financial results for the quarter ended December 31, 2017 (Q3 FY18).

On a standalone basis, total income of the Company for the quarter stood at Rs. 944.39 crores, PBT stood at Rs. 37.17 crores and PAT was Rs. 26.19 crores. Since the restructuring came into effect on 01.05.2017 in the current financial year, results are not comparable with the same quarter of previous year.

On consolidated basis, the total income of the Company grew by 50%, from Rs. 1102.90 crores in Q3 FY17 to Rs. 1651.56 crores in Q3 FY18.  PBT recorded a marginal dip of 5%, from Rs. 81.10 crores in Q3 FY17 to Rs. 77.10 crores in Q3 FY18, while PAT recorded a growth of 12% from Rs. 51.63 crores in Q3 FY17 to Rs. 57.58 crores in Q3 FY18.  Higher raw material cost in Q3, especially ammonia which increased by around 40% on YoY basis, impacted the profitability.

On a consolidated basis, chemicals segment reported revenues of Rs. 1191.61 crores in Q3 FY18 as compared to Rs. 921.32 crores in Q3 FY17, and segment profit stood at Rs. 160.65 crores in Q3 FY18 as compared to Rs. 164.00 crores in Q3 FY17. Strategic trading activities continued to contribute to the topline growth of Industrial Chemicals segment. Manufactured products reported growth in volumes, however, reported revenue in Q3 FY18 dipped marginally by 3% as compared to Q3 FY17 due to exclusion of GST from the revenue while comparative figures included excise duty. Based on improved demand coupled with aggressive marketing strategy, in Q3 FY18, Technical Ammonium Nitrate (TAN) crossed 100,000 metric tonnes in a quarter for the first time and recorded highest ever volumes with ~92% capacity utilization.

In Fertilizer segment, the NPK production from the newly commissioned NPK plant is stabilizing rapidly and the market is responding positively on the new manufactured grades. Capacity utilization of the new plant was as per expectation and during the quarter capacity utilization was ~81%, resulting in a significant 96% growth in revenues for the quarter as compared to same quarter FY17. Fertilizer segment reported revenues of Rs. 449.03 crores in Q3 FY18 as compared to Rs. 229.50 crores in Q3 FY17, segment profit stood at Rs. 9.89 crores in Q3 FY18 as compared to a loss of Rs. 1.66 crores Q3 FY17. As the trading of bulk fertilizers was being done mainly to seed the market, post the commissioning of the new NPK plant, trading activities have been gradually retracted and the market demands would be catered by manufactured products.

Mr. Sailesh C. Mehta, Chairman & Managing Director – DFPCL mentioned, “Pro-farmer and pro-infrastructure initiatives announced by the Hon’ble Finance Minister Shri Arun Jaitleyji during the Union Budget is encouraging for your Company and we are confident that once these are implemented, they would further enhance your Company’s growth and performance.

Higher capacity utilization and increase in volumes were the main drivers for the quarter, though in the near terms we witness rise in the price of commodities, especially our key raw materials like ammonia, phos acid and natural gas. This is largely a cyclic effect and we expect these to start lowering going forward.

Demand for chemicals is positive and over the past couple of quarters has led to higher volumes in traded chemicals, especially IPA.

On the ongoing projects update, progress of the Dahej Nitric Acid plant is as per plan and is scheduled to be commissioned in H2 FY19

Corporate Comm India(CCI Newswire)