Deepak Fertilizers & Petrochemicals Corp Ltd share Price

Q3FY23 Quarterly Result Announced for Deepak Fertilisers & Petrochemicals Corporation Ltd.

Deepak Fertilisers & Petrochemicals Corporation announced Q3FY23 results:

Q3FY23 & 9MFY23:

• Segment Performance:
  • 9M chemicals segment contributed ~87% of segment profits. Revenues grew by 60% YoY and margins increased from 21% (9M FY22) to 33% (9M FY23)
  • 9M fertilisers segment revenues grew by 39% YoY with segment margins of 7%.
• Strong performance despite adverse movement of key RM Prices in 9M: ammonia up ~83.7% YoY; phos acid up ~80.7% YoY; RGP up ~16% YoY; MOP up 103%, gas up 95.6%
• TAN Project Funding: Tied up entire debt of Rs 1,541 Crores with door-to-door tenor of 14 years.
• State incentive on NPK Project investment: Received ‘Sanction of Industrial Promotion Subsidy Claim’ for FY20, FY21 and FY22 of approx Rs 25 crores from Directorate of Industries, Government of Maharashtra in Jan 2023.
• Asian Development Bank Blue Loan: First tranche of $15 Million disbursed in November 2022
• Corporate Restructuring: Announced demerger plan of its Mining Chemicals & Fertiliser Businesses in Dec 2022; Composite scheme of arrangement has been admitted with National Company Law Tribunal (NCLT) on January 25, 2023

Commenting on the performance, Mr. Sailesh C. Mehta, Chairman & Managing Director: “ We, at DFPCL group, have been consistent in delivering overall business growth supported by strong operational performance, dominant market position and robust cashflows. This is indeed our Best Ever Q3 and 9M Performance despite having to weather the headwinds such as unfavourable raw material pricing and difficult global economic conditions.

Our Ammonia Greenfield Plant is on track, and we expect that it will be operational by the first quarter of FY24. Project has already achieved an overall progress of 93.5% as of Dec’22 and construction work is almost complete. Project has already been granted Ultra-Mega project status by Government of Maharashtra. Through bilateral negotiations with gas aggregators, we have tied up around 40% of gas needs for the upcoming Ammonia project which is brent-linked and at an attractive discount to spot. In addition to this, we are in advance stage of discussion with gas aggregators and also targeting purchase of domestic gas through auction route.

Considering TAN and Crop Nutrition business have attained a strategic size and relevance, Corporate Restructuring plan shall provide required unlocking with strategic flexibility to drive long-term business growth and value creation for the end customers, employees and other stakeholders”

Result PDF