Deepak Fertilisers' Q4 profit after tax declines 9% to Rs 257 crore

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) on Wednesday reported a 9 per cent decline in consolidated profit after tax (PAT) to Rs 257.37 crores in the March 2023 quarter.

The industrial chemicals and fertilisers producer's PAT was Rs 282.91 crore a year ago, the company said in a BSE filing.

Its revenue from operations surged 38.91 per cent to Rs 2,795.54 crores in the quarter under review from Rs 2,012.48 crores in the year-ago period.

In FY23, DFPCL reported 63 per cent growth in PAT at Rs 1,120.88 crore compared to Rs 689.48 crore in the previous fiscal.

Similarly, its revenue from operations increased 47.46 crore to Rs 11,300.69 crore in 2022-23 from Rs 7,663.29 crore in FY22.

"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," DFPCL chairman and managing director Sailesh C Mehta said.

Although there would be some volatility in the upcoming quarters in the medium and long term, the company's continued drive from commodity to specialities in each of our segments will help enhance margins and create brand values, he added.

"Our upstream investments in ammonia as a key raw material for each of our segments will help mitigate risk against global vagaries.

"Our ongoing drive to create a natural hedge by way of pass-through pricing contracts for our finished products will help insulate margins. Strong in-roads in cost and marketing efficiencies with digital drive will set a strong foundation for long-term strengths," he added.

DFPCL's shares on Wednesday closed at Rs 595.65, down 0.44 per cent on BSE.