Deepak Fertilisers FY23 profits up 78% at ₹1,221 crore on higher sales

Deepak Fertilizers and Petrochemicals Corporation Limited reported a 9 per cent drop in net profit for the March quarter at ₹257 crore over the corresponding period of the previous year at ₹283 crore on higher expenses. Revenue for the quarter increased by around 40 per cent on high sales of ₹2,796 crore over the same period last year to ₹2,012 crore.

For the year ending March 2023, Deepak Fertilizers saw its net profit rise by around 78 per cent to Rs. 1,221 crore over the previous year’s Rs. 687 crore. Revenue for the year increased by 47.5 per cent to Rs. 11,301 crore over the previous year’s Rs. 7,633 crore.

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

Chemicals segment revenue increased by 40% and contributed about 85% of the segment’s profits. Likewise, fertilizer segment revenue increased by 59 percent.

“Despite the huge uptick in finished products that have resulted from the raw material booms, we have seen no demand destruction across all three of our business segments. This strongly underscores the positive tailwinds to the fertilizer segments,” said Sailesh C Mehta, Chairman and Managing Director of Deepak Fertilizers. , Mining, and Pharmaceuticals/Chemicals, arising from their remarkable fit with India’s growth story.

“Our continued pursuit from commodities to specialties in each of our segments will help enhance margins and create brand values. Our upstream investments in ammonia as a key feedstock for each of our segments will help mitigate risks against global volatility.”

Deepak Fertilizers, which is in the process of constructing the Rs 4,300 crore green ammonia project, expects to do the same in the current quarter.

The company, which reported strong volume growth in its mining chemicals business during FY23, expects the trend to continue as coal mining demand is likely to remain elevated due to strong energy demand. Also, the company plans to focus more on crop-specific nutrient solutions to benefit from various outreach initiatives for farmers.