Driven by volumes across chemicals and fertilizers, Company reports growth in revenues, crosses
Rs.6,061 crores as against Rs.4,378 crores in the previous year
Company Highlights of FY18
Mumbai/Pune, May 31, 2018: Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) todayannounced its financial results for the quarter ended March 31, 2018 (04 FY18).
On a standalone basis, total income of the Company for the quarter grew by 89% from Rs. 619.77 Crores in 04 FY 17 to Rs. 1,174.40 crores in 04 FY 18. PBT recorded a growth of 29% from Rs. 38.74 Crores in 04 FY 17 to Rs. 49.95 crores in 04 FY 18, while PAT recorded a growth of 112% from Rs. 25.54 Crores in 04 FY17 to Rs. 54.07 crores in 04 FY18.
On consolidated basis, the total income of the Company grew by 53%, from Rs. 1,256.27 crores in 04 FY17 to Rs. 1,916.33 crores in 04 FY18 driven by increase in TAN and solvent trading volumes. PBT stood at Rs. 43.38 crores in 04 FY18 as compared to Rs. 70.54 crores in 04 FY17 and PAT stood at Rs. 38.98 crores in 04 FY18 as compared to Rs. 32.46 crores in 04 FY17. Higher raw material cost in 04 FY18, especially ammonia and natural gas, which increased by 32% and 25% respectively on YoY basis, impacted the profitability.
Chemicals segment reported revenues of Rs. 1,454.11 crores in 04 FY18 as compared to Rs. 903.05 crores in 04 FY17, and segment profit stood at Rs. 140.26 crores in 04 FY18 as compared to Rs. 111.43 crores in 04 FY17. To strengthen its position as the most preferred supplier of solvents to the pharma sector, the Company continued trading activities, which contributed positively to the topline growth of the segment. All the manufactured products in Chemical segment reported growth in volumes during the current quarter. Continuing from the previous quarter, Technical Ammonium Nitrate continued to operate on higher capacity utilization based on improved demand. Reaffirmation of Anti-Dumping Duty for the next five years is encouraging and will further strengthen the outlook of TAN business.
Fertilizer segment reported revenues of Rs. 445.92 crores in 04 FY18 as compared to Rs. 342.27 crores in 04 FY17. Sudden price increase of Phosphoric Acid prices, which was not passed through to trade during the quarter impacted overall segment profitability. Segment reported a loss of Rs. 18.26 crores in 04 FY18 as compared to profit of Rs. 11.85 crores 04 FY17. As the new NPK plant stabilizes and capacity utilization is increasing, the Company will be able to replace traded products with better margin manufactured products.
On a standalone basis, total income of the Company for the year FY 18 achieved a growth of 51% at Rs. 3,280.63 crores as compared to Rs.2171.92 Crores in FY 17, PBT recorded a marginal dip of 4% from Rs. 137.01 Crores in FY 17 to Rs. 130.93 in FY 18, PAT recorded a growth of 25% from Rs. 90.30 Crores in FY 17 to Rs. 112.89 crores.
On consolidated basis, the total income of the Company grew from Rs. 4,393.98 crores in FY17 to Rs. 6,085.63 crores in FY18, primarily driven by increase in NPK volumes and enhanced trading volumes of solvents. PBT and PAT were reported at Rs. 232.88 crores and Rs. 166.49 crores in FY 18 as against Rs. 232.76 crores and Rs. 156.93 crores in FY17 respectively. The company gained leading market position in Maharashtra with 20.6% market share in bulk fertilizer segment. However, due to first year of operation of its NPK plant and increased competition in the market place, company incurred higher production and marketing cost, but plant stabilisation and better operating efficiencies are expected in the current year, which would help improve segment performance going forward.
Increase in raw material costs, especially Natural Gas and propylene, depressed margins in Acids and increased depreciation, interest charge due to capitalization of NPK plant and higher marked to market forex loss compared to previous year resulted in flat profitability in FY18 despite 38% increase in revenue over FY17.
Mr. Sailesh C. Mehta, Chairman & Managing Director, DFPCL mentioned, “FY18 has marked a significant milestone in our journey of growth. The year witnessed announcement of capacity expansion, gradual stabilizing of new NPK plant production, launch of innovative products in the fertilizer sector, higher capacities utilization across segments and undertaking operational excellence initiatives.
Our transformation journey to move from commodity offering to value added solution is shaping as per expectations. Currently, our management consulting partners are testing various hypothesis that would help us move from product-based pricing to value based pricing across segments, thereby improving the contribution margins.
Company launched Smartek range of value-added fertilizers, a first-of-its-kind fertilizers that not only improve the nutrient consumption of the plant but will also help in improving and maintaining soil condition. Market feedback has been positive, encouraging the Company to fast track crop specific range of fertilizers.
Pharma continues to grow steadily and leading nitro aromatics and nitric acid derivative manufacturers are expanding their capacities which are likely to be commissioned in FY19. These would provide an impetus of growth to acids and solvents businesses.Mining and infrastructure segments are key growth sectors for the country. As the Government focusses on growing these sectors, it would be a key growth driver for TAN. Exports and new product development would be the focus for TAN.On the ongoing projects update, progress of the DahejNitric Acid plant and IPA plant ore on track and are scheduled to be commissioned as per plan. Going forward we would continue to focus on strengthening our core that has been built with four decades of experience.”
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