Deepak Fertilisers and Petrochemicals Corporation today reported a 22.84 per cent decline in profit after tax (PAT) at Rs 34.72 crore in the quarter ended June 30, mainly due to delayed monsoon.
The company's PAT stood at Rs 45 crore in the corresponding quarter of 2015-16, it said in a statement issued here.
The total income of the company also fell marginally to Rs 1,044.87 crore during the first quarter from Rs 1,127.56 crore in the same period last year.
Last year, in the same quarter, profits also included a non-standard dividend receipt of Rs 27.5 crore out of the sale of Mangalore Chemicals and Fertilisers shares, it said.
Performance of the quarter under review was severely dampened by delayed monsoon till early July, leading to severe water cuts, which not only impacted production but it also held back farmers on their fertiliser procurements, it added.
"With the onset of good monsoon and favourable developments on gas and subsidy, current aberrations are likely to pass over in the balance part of the year.
"The new NPK facilities are slated to be commissioned in Q3, which will enlarge our holistic basket of micro-nutrient enriched fertilisers. Also, the company's chemical business will see a strong growth arising out of the Nitric Acid expansion project.
"The planned growth initiatives in each business remain well aligned to the country's growth trajectory," DFPCL Chairman and Managing Director, Sailesh C Mehta said.
During Q1, the fertiliser business experienced a shortfall in volumes due to muted demand scenario on account of continuing drought conditions during the quarter and farmers waiting for arrival of monsoon to trigger offtake in market, the company said.
In view of prevailing market conditions, the company also chose to reduce its trading activities in this segment.
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