Ramp up in production of NPK plant and improved performance by the chemicals segment, including TAN, led to growth in revenues and profitability
Consolidated Y-o-Y Growth
– Revenue 27%
– Profit Before Tax 82%
– Profit After Tax 70%
Mumbai: Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) today announced its financial results for the quarter ended September 30, 2017 (Q2 FY18).
The financial results for the quarter are drawn up after giving effect to the Scheme of Restructuring approved by NCLT. Accordingly, Company’s standalone results pertain to its Industrial Chemicals and Value-added Retail business whereas the consolidated results represent businesses including Industrial Chemicals, Fertilizers, Technical Ammonium Nitrate and Value added real estate.
On a standalone basis, total income of the Company for the quarter stood at Rs.596.72 crores, PBT stood at Rs.20.46 crores and PAT was Rs. 14.34 crores. Since the restructuring was effected on 01.05.2017 in the current financial year, results are not comparable with the same quarter previous year.
On consolidated basis, the total income of the Company grew by 27%, from Rs. 968.44 crores in Q2 FY17 to Rs. 1,233.93 crores in Q2 FY18. Operating EBIDTA grew from Rs. 91.73 crores in Q2 FY17 to Rs. 143.88 crores in Q2 FY18. PBT and PAT recorded a growth of 82% and 70% respectively, from Rs. 35.33 crores and Rs. 27.78 crores in Q2 FY17 to Rs. 64.43 crores and Rs. 47.21 crores in Q2 FY18.
On a consolidated basis, chemicals segment reported revenues of Rs. 773.94 crores in Q2 FY18 as compared to Rs. 689.61 crores in Q2 FY17, and segment profit stood at Rs. 126.22 crores in Q2 FY18 as compared to Rs. 96.02 crores in Q2 FY17. Industrial Chemicals traded products portfolio recorded a substantial 58% jump in revenues over Q2 FY17. Manufactured products reported growth in volumes, however, reported revenue in Q2 FY18 is net of GST, while Q1 FY17 revenue was inclusive of excise duty, resulting in marginal dip in the reported revenue. In Q2 FY18, Technical Ammonium Nitrate (TAN) recorded noteworthy growth in volumes as compared to Q2 FY17, where volumes were impacted due to higher imports and extended monsoons during that quarter.
In Fertilizer segment, the Company ramped up its NPK production from the newly commissioned NPK plant and produced additional NPK volumes of 91,743 MT during Q2 resulting in a significant 43% growth in revenues. Fertilizer segment reported revenues of Rs. 450.48 crores in Q2 FY18 as compared to Rs. 314.72 crores in Q2 FY17, segment profit stood at Rs. 18.98 crores in Q2 FY18 as compared to a loss of Rs.4.79 crores Q2 FY17.
Mr. Sailesh C. Mehta, Chairman & Managing Director – DFPCL mentioned, “Q2 has been reassuring from the perspective of improved performance from each of our businesses, in terms of volumes as well as margins.
All the three verticals of the Company; viz Industrial Chemicals, TAN and Crop Nutrition, stand to benefit from various Government initiatives recently announced for developing infrastructure and farmer centric programs. Government drive to boost infrastructure in the country through the recently announced Bharatmala project alongwith the National Mineral Exploration policy, 2016, whereby about 100 blocks have been identified by GSI for auctioning for regional exploration will boost the coal, mineral and limestone mining, adding further impetus of growth to the TAN segment.
India and the US will soon intensify the work on development of shale gas in coastal India and is also renegotiating LNG prices with world’s largest energy suppliers, which would help in softening of LNG / Natural Gas prices, further benefiting the Company, since LNG / Natural Gas are its key raw materials.
The Indian pharma industry, which is slated to grow at 15% as against global growth rate of 5% and is poised to grow to US$ 55 billion by 2020, will boost the solvents consumption, especially IPA, where the Company enjoys the highest market share and has already announced its expansion plans for increasing the production of IPA to cater to the growing demand.
With the rapidly approaching Rabi season and thrust on infrastructure projects, the Company is expected to continue this reasonably positive trend in the forthcoming quarters.
On the ongoing projects update, the Company has successfully tied up debt financing for its Rs. 575 crores for the Dahej Nitric Acid plant, which is scheduled to be commissioned in H2 FY19.
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