Deepak Fertilisers & Petrochemicals Corporation was locked in an upper circuit of 5% at Rs 595.75 after the company posted a 144% jump in consolidated net profit to Rs 283 crore in Q4 FY22 from Rs 116 crore registered in Q4 FY21.
Revenue from operations increased 28% year on year to Rs 2,012.48 crore in Q4 FY22 from Rs 1,575 crore posted in the same period last year. The company said strong top line growth and margin enhancement was primarily supported by robust demand, improved realization and strategic initiatives undertaken at the marketplace.Consolidated profit before tax stood at Rs 420.14 crore in Q4 FY22, rising 134% from Rs 179 crore posted in Q4 FY21. Total expenses rose 14.31% year on year to Rs 1,602.39 crore while cost of raw materials consumed jumped 36% year on year to Rs 1,042.8 crore in the quarter ended 31 March 2022.
Finance cost was reduced 19% YoY to Rs 38.60 crore, driven by amortization of operating term loans and continued reduction of short-term debts.
Consolidated operating EBITDA improved by 84% to Rs 502 crore in Q4 FY22 from Rs 273 crore posted in the same period last year. EBITDA margin improved to 25% in Q4 FY22 from 17% in Q4 FY21.
On full year basis, the petro chemical company reported 69% rise in consolidated net profit to Rs 687 crore on a 32% increase in net sales to Rs 7,663.29 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.
Commenting on the performance, Sailesh C. Mehta, chairman & managing director said, Improved price realisation on the back of strong demand for our products and strategic initiatives taken at the marketplace allowed us to sustain our momentum despite steep increase in RM prices and disruption in supply chains of some of our RMs that affected our capacity utilisation in Q4.
The Government of India's PLI schemes in solar and electronic industry are likely to improve demand for niche and specialty premium graded Nitric Acid. In a bid to cater to the changing demands in the market, IC business has been innovating and developing specialty grades of Nitric Acid and IPA for specific application segments. Deepak Fertilisers & Petrochemicals Corporation is focusing on increasing its crop specific product portfolio and market penetration of its speciality fertilizers. The Ammonia Project at Taloja (Maharashtra), which is adjacent to its downstream customer, is making strong progress and is well on track, he added.
The board recommended a dividend of Rs 9 per equity share for the financial year ended 31 March 2022.
Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.
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