Deepak Fertilisers profit jumps 415% in Q4

Going forward there is head room available in capacities to provide for good growth upside, Mehta added

Deepak Fertilisers and Petrochemicals Corporation on Friday reported a 415% year-on-year jump in net proft to Rs 116 crore for the March 2021 quarter. Consolidated revenues grew by 21.8% y-o-y to Rs 1,575 crore in the quarter. Revenues from the chemical business increased by 15% to Rs 870 crore with margins going up to 27% in the quarter.

Global specialty chemical value chains were moving from China to India, boosting nitric acid demand and prices in India, the company said.

Revenues in the fertiliser segment rose by 32% to Rs 702 crore. However, a rise in key raw material prices affected margins during the quarter in the fertiliser segment. Ammonia prices rise by 11.8% rise while phosphoric acid prices went up by 18.3%, the company said.

Sailesh C Mehta, chairman and MD, said key investments made over the last four years have started delivering. The company’s strategic initiatives to transform from a commodity to specialty position held tremendous promise for the future, he said.

Going forward there is head room available in capacities to provide for good growth upside, Mehta added.