Despite of a good rise in revenues, Deepak Fertilisers and Petrochemicals Corporation (DFPCL) posted an 8.54 per cent drop in net profit to Rs 22.38 crore during the quarter ended December 31, 2008, as against Rs 24.47 crore in the corresponding quarter of the previous year.
The company revenues jumped to Rs 371.39 crore during the quarter, which reflects a rise of 34.39 per cent against Rs 276.35 crore posted over the same period last year, DFPCL said in a filing to the Bombay Stock Exchange (BSE).
Increased cost of operations and heavy spendings on employee salaries are key reasons for the drop in net profit during this quarter despite of a substantial increase in income. The rise in revenues comes from company's fertilisers and realty segments. While the fertilisers and realty segments generated revenues worth Rs 195.42 crore and Rs 4.25 crore, the chemicals segment could generate sales worth Rs 174.75 crore during the quarter. Following the drop in profits, the company earnings per share (EPS) fell to Rs 2.54 from Rs 2.77 on a Y-o-Y basis, a statement issued said.