Deepak Fertilisers & Petrochemicals Corporation was locked in an upper circuit of 5% at Rs 709.65 after the company's consolidated net profit surged 233.5% to Rs 435.66 crore in Q1 FY23 from Rs 130.63 crore registered in Q1 FY22.
Revenue from operations jumped 59.4% year on year to Rs 3,031.07 crore in Q1 FY23 from Rs 1,902.10 crore posted in the same period last year. The company said robust top line growth and margin enhancement was primarily driven by chemical segment.Consolidated profit before tax stood at Rs 649.46 crore in Q1 FY23, rising 241% from Rs 190.41 crore posted in Q1 FY22. Total expenses rose 39.3% year on year to Rs 2,392.82 crore while cost of raw materials consumed jumped 56.5% year on year to Rs 1,888.65 crore in the quarter ended 30 June 2022.
Consolidated operating EBITDA grew 155.17% to Rs 740 crore in Q1 FY23 from Rs 290 crore posted in the same period last year. EBITDA margin improved to 24.3% in Q1 FY23 from 15.2% in Q1 FY22.
On segmental front, revenue from Chemicals segment jumped 95.48% YoY to Rs 1,770.81 crore and Fertilizers segment's revenue rose 26.4% YoY to Rs 1,255.86 crore in the quarter ended 30 June 2022.
Commenting on the performance, Sailesh C. Mehta, chairman & managing director said, We have continued our strong operational performance in Q1 FY23 on the back of improved margins in Chemical segment. This persistent business performance is a result of our long-term strategic initiatives, strong market positioning and favourable market conditions.
Chemical product portfolio delivered growth in sales volumes as well as significant margins expansion. Fertiliser segment revenue increased significantly although margins impacted due to uncertainties around cost passthroughs and subsidies, he added.
He further added, Consumption in Q2 is expected to increase supported by higher commodity prices for cash crops due to robust climatic conditions. In Q2, TAN business focus is to ensure continuous evacuation and operation of TAN plants in view of seasonally lean demand as well as momentum in AN imports. To support continuous production, our country wide warehouse network will be used to distribute build-up stock in H2. Furthermore, the Ammonia Project at Taloja (Maharashtra) and the TAN Plant at Gopalpur (Odisha), are making strong progress on the ground and are on track Long-term growth is expected to be underpinned by change in product mix, head room availability of additional capacities emerging from better operational management and debottlenecking along with greenfield expansions
Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.
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