Crop Nutrition Business (CNB) achieved a remarkable 83% YoY increase in sales volume of manufactured bulk fertilizer, which is highest ever sales
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial & mining chemicals and fertilisers, announced its results for the quarter ended September 30, 2024.
DFPCL has reported net profit of Rs. 214 crore in Q2 FY25 as compared to Rs. 63 crore, reflecting a growth of 237 per cent. Operating revenue in Q2 FY25 stood at Rs. 2,747 crore as compared to Rs. 2,424 crore, showing an increase of 13 per cent. During Q2 FY25, the company’s EBITDA margin improved to 18% compared to 12% year-over-year.
DFPCL also achieved an 83% year-over-year increase in sales volume of manufactured bulk fertilizer, marking the highest sales in a quarter. The company said that increases in global ammonia prices are now fully captured internally.
During the quarter, DFPCL’s capacity enhancement of approximately 10% resulting from debottlenecking of the TAN plants, delivered an additional 50 KTPA and brought the total TAN capacity volumes to 587 KTPA to support the growing needs of India’s mining sector.
Commenting on the performance, Sailesh C. Mehta, Chairman & Managing Director, said: “DFPCL has shown impressive performance in Q2 FY25, achieving a 13% growth in revenue. This growth was primarily driven by the Crop Nutrition business, which experienced an 18% YoY increase in revenue, while the Chemical business grew by 8% YoY despite a lean quarter for the chemical sectors. Fertilizer and Chemical businesses acted as a natural hedge, enabling the company to deliver consistent and improved performance.
“There has been a consistent increase in the proportion of revenue from specialty products, along with an overall rise in revenue, driven by the strategic move of transitioning from commodity to specialty.
“Crop Nutrition Business (CNB) achieved a remarkable 83% YoY increase in sales volume of manufactured bulk fertilizer, which is highest ever sales.
“Mining Chemical: Monsoon is a lean period due to slowdown in mining activities. Accordingly, we had taken a planned shutdown of Technical Ammonium Nitrate (TAN) plant for maintenance and capacity enhancement of 50 KTPA, taking total capacity to 587 KTPA.
“The Industrial Chemicals business experienced a healthy revenue growth of 9%, despite marginal decrease in volumes. This performance underscores our strategic shift from commodities to specialty chemicals, which has effectively mitigated price volatility.
“The ammonia plant has enabled all our businesses to reap substantial benefits from backward integration, effectively mitigating supply chain risks and price volatility. As a result, we are now able to capture the increases in global ammonia prices within the group.
“As India continues to grow, the chemical and fertilizer sectors are poised to thrive. The demand outlook for the Crop Nutrition, Mining Chemicals, and Industrial Chemicals Business is well aligned with India’s growth story, providing strong and positive tailwinds. We are actively working on the execution of the TAN Project and the Nitric Acid Project in Gopalpur and Dahej, respectively, to capitalize on future growth.”
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