Deepak Fertilisers' Q1 net up 10% at Rs 37.25 crore; total income grows 74% to Rs 2,226.19 crore

Mumbai: Deepak Fertilisers and Petrochemicals Corporation on Thursday posted a 10 percent rise in consolidated net profit to Rs 37.25 crore in the June quarter. The company had reported a net profit of Rs 33.78 crore in the year-ago period. Its total income grew 74 percent from Rs 1,280.30 crore in Q1 FY18 to Rs 2,226.19 crore in Q1 FY19, the company said in a release. The chemicals segment reported revenues of Rs 1,637.53 crore in the June quarter, compared with Rs 810.83 crore in the year-ago period, with segment profit standing at Rs 151.29 crore, against Rs 86.22 crore last year. [caption id=“attachment_1989685” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Its industrial chemicals traded products portfolio recorded a substantial 253 percent jump in revenues. The fertiliser segment reported revenues of Rs 580.14 crore, compared with Rs 461.69 crore, with the segment profit standing at Rs 17.05 crore, against Rs 26.13 crore. “The company said multiple global phosphoric acid and LNG price hikes and a lag in transferring its impact in the new MRPs have led to the underperformance of the segment in the quarter,” the company said. It strengthened its leadership position in speciality fertilisers segment, selling 8,748 tonne of sulphur bentonite in the June quarter, compared with 5,172 tonne last year, a growth of 69 percent. Meanwhile, the company’s board today approved capacity expansions of isopropyl alcohol (IPA) and technical aluminium nitrate (TAN) due to growing product demand, with a capex outlay of about Rs 2,350 crore. It also approved an ammonia facility capex as a backward integration at the cost of about Rs 2,950 crore. The board has also approved raising of equity up to Rs 800 crore through various options of securities towards part funding the capex plan, to ensure prudential leverage norms, the release said. The company’s shares ended 1.81 percent lower at Rs 273.45 apiece on the BSE today, against 0.36 percent rise in the benchmark.