Deepak Fertilisers and Petrochemicals Corporation Q1 PAT surges 75% to Rs 200 crore

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) on Wednesday reported 75.43 per cent growth in consolidated profit after tax at Rs 200 crore for June quarter FY25.

The company's profit after tax (PAT) stood at Rs 114 crore during the corresponding quarter of the previous financial year, DFPCL said in a regulatory filing.

Revenue declined to Rs 2,281 crore from Rs 2,313 crore due to lower commodity prices.

The company said the first quarter of previous year saw a one-time impact of Rs 161 crore of subsidy on channel inventory and warehouse stock.

"We have delivered an impressive performance for Q1FY25, with a notable increase in EBITDA margin by 823 basis points YoY, up from 12.1 per cent to 20.4 per cent. The businesses are reaping the benefits of backward integration of ammonia plant, which has helped mitigate supply chain risk as well as price volatility and the benefits are captured within the group," Chairman and Managing Director Sailesh C Mehta said.

Also, he said, the strategy of moving from commodity to speciality has been working to sustain and enhance the margins of the businesses.

"Mining chemical segment demonstrated robust volume and margin growth supported by stable imported Fertiliser Grade Ammonium Nitrate (FGAN) prices and lower ammonia prices. The proposed duty hike on ammonium nitrate will also help going forward," Mehta said.

The fertiliser business volume was driven by Croptek and specialty fertilizers, providing crop specific solutions to farmers, and despite delayed monsoon and high inventory of phosphatic fertilisers, volumes slightly declined by 3 per cent year-on-year.

"With rains predicted to be above normal, we expect volume growth in the coming quarter, boosted by new launches: Croptek grade for soyabean and Smartek for paddy and pulses. We continue to maintain sharp focus on operational efficiency, drive cost optimizations, capacity utilization, and productivity improvements, which will help us navigate through market challenges and remain steadfast in adding value to our shareholders," Mehta added.

Shares of the company on Wednesday closed at Rs 928.35 apiece, down by 4.13 per cent on BSE.