Deepak Fertilisers & Petrochemicals Corporation Limited on Tuesday announced its results for the quarter ending June 30, 2021.
Topline grew by 37.6% yoy to Rs1,902cr in Q1FY22 from Rs1,382cr in Q1FY21. Operating EBITDA of Rs290cr, growth of 6.7% yoy from Rs272cr in Q1FY21. Net Profit growth of 7.8% to Rs131cr in Q1FY22 compared to Rs121cr in Q1FY21.
The company stock was bearish post earnings and at around 1.08 pm, Deepak Fertilizers & Petrochemicals Corp Ltd was trading at Rs420.85 per piece down by Rs22.1 or 4.99% from its previous closing of Rs442.95 per piece on the BSE.
The company said it had a further reduction in Net Debt by approximately Rs240cr in Q1FY22. Finance Cost reduced by 22% yoy driven by better working capital management and continuous reduction of short-term debt. Achieved highest ever quarterly ANP & NPK production; Sold 1.31 Lakh MT sales of differentiated NPK (SMARTEK) product (+39% y-o-y); Speciality fertilizer also grew significantly.
It further said TAN volume grew by 11% yoy basis due to lower base in Q1FY21; Cement and Infra segment demand was slower QoQ due to the second wave of Covid. There was a sharp increase in key RM Prices yoy in Q1 (Ammonia up ~102%; Phos Acid up 49%, RGP up ~50%, MOP up 7%) affected margins, correction in finished goods prices expected over time. It won first export order to supply Rubbing Alcohol to Central America.
“Despite the persistent challenges posed by the second wave of COVID-19, we maintained a steady growth trajectory in our operational and business performance, which indeed met our expectations,” Sailesh C. Mehta, Chairman & Managing Director, said.
Mehta pointed out improvements during the Quarter:
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“Business continues to achieve significant improvement in collections, and better inventory management enabling reduction in Net Debt position substantially at the end of Q1FY22
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Lockdowns implemented in sections of the country hampered demand and supply in Q1FY22, while raw material prices grew sharply during the quarter. The robust quarterly results validate the resilience in our basket of products
Looking Forward:
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Through our on-going commitment with high quality and secured supply of locally manufactured TAN products to the Mining and Infrastructure industry, we will continue to play a key role in Nation building
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We are pleased to announce NBS approval for our crop specific grades by the Government of India. We would be introducing Crop Specific grades in next Rabi season
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Balance Capex plans, once implemented will hugely solidify the strong foundations of the Company and help sustain and enhance our sectoral leadership built over the past 40 years
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Our efforts in each of the businesses to move from Commodity to Speciality continue with strong vigour and the next few years are expected to reap its positive impact”