Deepak Fertilisers Q3 profit doubles to Rs 181 cr

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Friday posted nearly two-fold jump in consolidated net profit at Rs 180.61 crore for the third quarter of 2021-22.

The company's net profit stood at Rs 88.95 crore in the same quarter of the previous fiscal year, according to a BSE filing.

Net revenue rose to Rs 1,972.79 crore during October-December period of 2021-22 from Rs 1,456.23 crore earlier.

Revenue from its chemicals business increased to Rs 1,181.78 crore during the quarter from Rs 795.73 crore in the year-ago period.

Revenue from the fertilizer business rose to Rs 769.44 crore from Rs 646.21 crore.

"During the quarter, net profits doubled owing to significant margin expansion in the chemicals segment, whilst the fertilizer segment faced challenges due to uncertainties around raw material availability and costs," Chairman and Managing Director Sailesh C Mehta said.

According to the company, the mining chemical business delivered an outstanding quarter and the outlook remains encouraging supported by an increase in mining and infrastructure related activities.

"We continued to work closely with our mining chemicals customers to demonstrate technical capability and value benefits. Furthermore, we are leveraging advanced technologies like drones and AI-based blast modelling to improve productivity in the mines and infrastructure projects," Mehta said.

The company also said a shift of global supply chain trend towards India is driving strong demand for nitric acid from downstream customers.

Overall, the company saw a strong topline growth across business segments. Operating profits continued to build on growth momentum despite unfavourable raw material prices impacting IsoPropyl Alcohol and fertilizer segment profitability, it added.

Shares of the company settled at Rs 542.25 apiece, up 5 per cent, on BSE.