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Deepak Fertilisers and Petrochemicals Corporation Ltd has posted a net profit of Rs 45.5 crore during the first quarter against Rs 64 crore in the corresponding period of FY12.
Income from operations in the quarter under review was Rs 634 crore, a 34 per cent growth year on year. Revenues from chemicals rose 41 per cent to touch Rs 469.97 crore, while those from the agri-business stood at Rs 179 crore, a rise of 22 per cent compared to that in the same period of last year.
Margins were impacted by higher raw material costs and the impact of the higher costs will be passed on to customers gradually, the company said. Borrowing costs were also higher during Q1 FY13 compared to Q1 FY12 because of an increase in working capital with the delayed receipt of subsidy from the Government and the full capitalization of the new TAN plant, which was effected in Q2 FY12.
Mr Sailesh C. Mehta, Vice-Chairman & Managing Director – DFPCL, said, “With the delayed monsoon the entire agri / fertiliser industry has slowed down a bit. The industry expects global ammonia prices to ease from the second half of Q3. This should also ease the stress on our margins going forward.”
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