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Deepak Fertilisers Q3 profit surges to Rs 88.95 crore

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Deepak Fertilisers Q3 profit surges to Rs 88.95 crore

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Deepak Fertilisers and Petrochemicals on Wednesday said its profit after tax (PAT) surged 193.46 per cent during the third quarter ending December 31, 2020, to Rs 88.95 crore compared to the same period of the previous financial year due to robust growth across all key business segments.

Deepak Fertilisers Q3 profit surges to Rs 88.95 crore
Deepak Fertilisers and Petrochemicals on Wednesday said its profit after tax (PAT) surged 193.46 per cent during the third quarter ending December 31, 2020, to Rs 88.95 crore compared to the same period of the previous financial year due to robust growth across all key business segments.
The company's PAT stood at Rs 30.31 crore during the corresponding quarter of 2012-20, Deepak Fertilisers and Petrochemicals (DFPCL) said in a statement.
The revenue from operations of the company went up by 29.26 per cent during the quarter under review at Rs 1,447.14 crore compared to Rs 1,119.49 crore in the same quarter of the previous fiscal.
DFPCL has registered a remarkable growth in PAT of over 190 per cent y-o-y for the quarter. DFPCL demonstrated robust growth across all three key business segments.
Focus on improving operational efficiencies, stringent cost optimisation initiatives while integrating technologies and innovations into daily operations during this unprecedented COVID phase have led to this stellar business performance," company Chairman and Managing Director Sailesh C Mehta said.
The overall performance of the industrial chemicals business in the third quarter of FY21 significantly improved year-on-year primarily driven by the robust demand for nitric acid, he said adding that a similar trend was seen even in the exports markets which favoured the company in improving its business margins and overall growth for the quarter.
"Fertiliser business delivered its fifth consecutive profitable quarter in the October-December quarter. We sold around 3.2 lakh tonne of Smartek products during the year till December end, which is over 120 per cent growth over the same period last year," he noted.
Technical ammonium nitrate (TAN) business also witnessed growth in the third quarter as end use industries like infrastructure, mining, cement and coal are showing signs of improvement, he said.
"Though, retrieving rains has caused damages to kharif crops and delayed Rabi sowing, we are optimistic for a good Rabi season. Gradual shift in the manufacturing activity of chemical intermediates from China to India is a big positive for Indian manufacturers."
"We expect this momentum in the nitric acid business to continue in the near term and contribute to our consolidated operating margins," he stated.
Further, he said that the recently announced Budget by the government has laid additional emphasis in boosting national infrastructure, which is the backbone of any developing nation.
"We anticipate our TAN business to significantly benefit from the infrastructure spending. Since most of our businesses cater to the critical sectors of the economy, we are confident of continuing our growth momentum on the back of robust GDP growth for India in the coming years, Mehta added.
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