Deepak Fertilizers and Petrochemicals Corporation (DFPCL) today reported a 4.76 per cent decline in profit after tax (PAT) to Rs 26.96 crore for the second quarter ended September 30.
The company's PAT stood at Rs 28.31 crore during the same period last year, it said in a release issued here.
Total income of the company also fell by 14.32 per cent to Rs 938.21 crore in the second quarter from Rs 1,095.03 crore in the same period last year.
The company witnessed marginal growth in chemical business, however, recorded subdued performance in fertilisers because of higher carryover stocks in the country and comparatively lower volumes in Ammonium Nitrate due to seasonal slowdown with delayed and extended monsoons, said the statement.
The combined negative impact in the fertiliser sector emerging out of the delayed monsoons, inventory build-up from earlier quarter and sudden price cuts impacted the quarter performance, it said.
"After two consecutive droughts, the country witnessed good monsoons in the current year. We are poised for achieving smooth production with restoration of full scale water supply and optimistic with respect to outlook for demand growth across all our businesses," said DFPCL Chairman and MD Sailesh C Mehta said.
"Our fertiliser expansion project is aligned to cater to the next Kharif season and we are optimistic about a significantly better performance of the fertiliser segment in the quarters to come," Mehta added.
The growth in the mining sector and related explosive industry is reassuring and the company is expecting better performance of Technical Ammonium Nitrate (TAN) in the subsequent quarters, despite competition from imports, he added.
The brown field expansion of fertiliser is progressing as per schedule and trial production is likely to commence in Q3 FY17, he said.
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