Deepak Fertilisers Q3 PAT jumps 193% yoy to Rs89cr

Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) Profit After Tax (PAT) jumped by 193% yoy to Rs89cr in Q3FY21 and increased 337% yoy to Rs291cr in 9MFY21 in the financial results posted by the company for December ended 2020 quarter. PAT margin expanded by 350 bps to 6.1% in Q3FY21 and expanded by 491 bps to 6.8% in 9M FY21.

The company’s total operating revenues increased by 29% yoy to Rs1,447cr in Q3FY21 and increased 25% yoy to Rs4,233cr in 9MFY21. Total Operating EBITDA increased by 100% yoy to Rs217cr in Q3FY21 and increased 98% yoy to Rs682cr in 9MFY21. EBITDA margin expanded by 529 bps to 15% in Q3FY21 and expanded by 595 bps to 16.1% in 9MFY21.

DFPCL’s finance cost reduced significantly by ~29% yoy in Q3FY21 and ~24% yoy in 9MFY21. Reduction in finance cost was primarily driven by significant efforts towards improving collections and better working capital management, thereby reducing the short-term borrowings.

“It gives me great pleasure to share with you that DFPCL has registered a remarkable growth in EBITDA of 100% yoy and PAT of over 190% yoy for the quarter. DFPCL demonstrated robust growth across all three key business segments. Tremendous focus on improving operational efficiencies, stringent cost optimisation initiatives whilst integrating technologies and innovations into daily operations during this unprecedented Covid phase have led to this stellar business performance,” Sailesh C. Mehta, Chairman & Managing Director, Deepak Fertilisers And Petrochemicals Corporation Limited, said.

“The overall performance of the IC business in Q3FY21 significantly improved year on year; primarily driven by the robust demand for Nitric Acid. A similar trend is seen even in the exports markets which favoured us in improving our business margins and overall growth for the quarter. Our Dahej plant achieved 100% utilization capacity,” Mehta added.