Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) has reported a 40 per cent rise in Q3 net profits at ₹252 crore on higher sales. In the same period last year, DFPCL had reported a net of ₹181 crore.
Revenues during Q3 FY23 were up 41 per cent at ₹2755 crore compared to 1956 crore in the same period last year.
The chemicals segment revenues were up 37 per cent during the quarter, while the fertiliser revenues were up 47 per cent. Crop-specific fertilisers, such as Croptek and Solutek, received good responses, the company said.
For the first nine months, DFPCL reported a 50.5% growth in revenues at ₹8505 crore and a 138 per cent increase in profits at ₹964 crore over the same period last year.
Sailesh C Mehta, CMD, DFPCL said the quarterly and the nine-month performance of the company has been the best ever despite having to weather headwinds, such as unfavourable raw material pricing and difficult global economic conditions. “Our Ammonia Greenfield Plant is on track and we expect that it will be operational by Q1 FY24. The project has already achieved an overall progress of 93.5% as of Dec’22 and construction work is almost complete. The project has already been granted Ultra-Mega project status by the Government of Maharashtra. Through bilateral negotiations with gas aggregators, we have tied up around 40% of gas needs for the upcoming Ammonia project, which is brent-linked and at an attractive discount to spot.” Mehta said.
Also, the company is in the advanced stage of discussion with gas aggregators and also targeting the purchase of domestic gas through the auction route. “Considering TAN and Crop Nutrition business have attained a strategic size and relevance, Corporate Restructuring plan shall provide required unlocking with strategic flexibility to drive long-term business growth and value creation for end customers, employees, and other stakeholders” he said.