Deepak Fertilisers and Petrochemicals Corporation Ltd. posted a 9 per cent dip in March quarter net profits at ₹257 crore over the corresponding period of the previous year’s ₹283 crore on higher expenses. Revenues for the quarter were up by about 40 per cent on higher sales at ₹2,796 crore over the same period last year’s ₹2,012 crore.

For the year ended March 2023, Deepak Fertilisers saw its net profits zoom by about 78 per cent to ₹1,221 crore over the previous year’s ₹687 crore. Revenues during the year were up 47.5 per cent at ₹11,301 crore over the previous year’s ₹7633 crore.

The company reported strong performance despite the adverse movement of key raw materials such as ammonia, phosphoric acid, and natural gas, among others.

Chemicals segment revenues were up 40 per cent and contributed about 85 per cent of the segment’s profits. Similarly, the fertiliser segment revenues were up 59 per cent.

“Despite the enormous finished product spikes that resulted from raw material spikes, we did not witness any demand destruction in all of our three business segments. This strongly validates the positive tailwinds for our fertiliser, mining, and pharma/chemical segments, emerging out of their superb alignment with the India growth story,” said Sailesh C Mehta, Chairman and Managing Director, Deepak Fertilisers.

“Our continued drive from commodities to specialties in each of our segments shall help enhance margins and create brand values. Our upstream investments in ammonia as a key raw material for each of our segments will help mitigate risk against global vagaries,” he said.

Deepak Fertilisers, which is in the process of setting up a ₹4,300 crore greenfield ammonia project, expects to commission the same in the current quarter.

The company, which recorded strong volume growth in its mining chemicals business during FY23, expects the trend to continue as the demand for coal mining is likely to remain high due to strong demand for power. Also, the company plans to focus more on crop-specific nutrient solutions to capitalise on various farmer outreach initiatives.