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Deepak Fertilisers today reported 7% decline in net profit to Rs 39.85 crore for the quarter ended on June 30, 2014 as performance was affected by the "abrupt stoppage of gas supply" to its Taloja plant.
The company had clocked a net profit of Rs 42.73 crore in the same period last year.
Deepak Fertilisers and Petrochemicals Corporation Ltd's (DFPCL) total income from operations during April-June quarter of current fiscal rose by 27% to Rs 945.37 crore compared Rs 742.55 crore in same quarter in 2012-13 fiscal, the company said in a BSE filing.
"The performance of the company during the quarter was adversely affected on account of abrupt stoppage of gas supply to its plant at Taloja consequent to a decision by Ministry of Petroleum and Natural Gas," DFPCL said in a statement.
The company was compelled to shut down some of its plants due to non-availability of natural gas. Being an integrated plant, the gas stoppage also affected the utilities' plants, thereby increasing the operating costs, the statement added.
Speaking about the performance, DFPCL Chairman and Managing Director Sailesh Mehta said: "The first quarter was challenging for the company and the performance has been subdued due to various factors, which included, lower demand for TAN from mining and infrastructure sectors...."
This was due to negative growth in the sectors, temporary constraint in propylene supply and abrupt stoppage of gas supply which DFPCL feels is arbitrary and discriminatory, he added.
However, Mehta added that with improved outlook in the economic scenario, both domestic and global, the company is expected to improve performance in the forthcoming quarters.
Shares of the company today were trading at Rs 162 apiece, down 8.58%, in late afternoon trade.
