DFPCL Q4 FY24 PAT drops 14.7% at Rs. 220 Cr

DFPCL Q4 FY24 PAT drops 14.7% at Rs. 220 Cr

In Q4 FY24, DFPCL has reported Operating Revenue of Rs. 2,086 crore

  • By ICN Bureau | May 29, 2024

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial chemicals and fertilisers, announces its consolidated results for the fourth quarter and fiscal year ended March 31, 2024.

During Q4 2024, DFPCL has posted net profit of Rs. 220 crore compared to Rs. 257 core in Q4 FY 2023, reflecting a decline of 14.7 per cent. On QoQ basis, DFPCL’s Q4 PAT registered 262.8 per cent growth as PAT in Q3 FY24 stood at Rs. 61 crore.

In Q4 FY24, DFPCL has reported Operating Revenue of Rs. 2,086 crore as compared to Operating Revenue of Rs. 2,796 crore in Q3 FY23. The company’s Operating Revenue stood at Rs. 1,853 crore in Q3 FY24.

For the Financial Year ended March 31, 2024, DFPCL has posted net profit of Rs. 457 crore as compared to Rs. 1,221 crore for the Financial Year ended March 31, 2023, reflecting a drop of 62.5 per cent. During FY 2024, the company posted Operating Revenue of Rs. 8,676 crore as compared to Rs. 11,301 crore resulting in a de-growth of 23.2 per cent.

According to DFPCL, the year saw challenges in all segments i.e. fertilisers due to below normal monsoon, short-term aberration in the import of fertilizer-grade ammonium nitrate from Russia and import of Nitroaromatics from China, despite which the company demonstrated resilience and delivered sustained performance.

Commenting on the performance, Sailesh C. Mehta, Chairman & Managing Director, DFPCL, said: “The company has shown resilience and strategic focus despite the Chemical and Fertilisers segment facing challenges simultaneously. Short-term aberration in the import of fertilizer-grade ammonium nitrate from Russia, low cost Nitroaromatics from China and below normal rainfall in our core markets impacted business performance.  Despite the odds the company has delivered healthy performance with sustained margins, driven by innovation, operational excellence, and sustainability.

“We have entered into a 15-year long-term gas supply agreement with Equinor, commencing in May 2026. This move will ensure continuous supplies of Natural Gas and is expected to improve margins through effective natural gas/LNG hedging and in-house ammonia production, ensuring greater stability.

“We also signed a Commercial agreement with Haifa Group, a renowned multinational corporation specializing in Specialty Crop Nutrient. The MAL-Haifa offerings will support agricultural practices that counter the vicious trend of water scarcity and also enhance Nutrient Uptake & Use Efficiency in the plants.  This will directly help achieve our Prime Minister’s dream of “More Crop Per Drop”.

“For FY 24-25, the demand outlook for all our business segments looks positive. ‘IMD’ has forecasted above average normal rainfall in FY25, expecting a good Kharif and Rabi season this year.

“Mining Chemical business volume growth is expected to continue in FY25. Further, the business has demonstrated capability to deliver Total Cost of Ownership (TCO) projects across mining & infrastructure end-users customers and is in process to become a holistic mining solutions provider in India. This will help sustain margins and customer stickiness.

As we navigate through evolving market dynamics, we remain steadfast in our commitment to creating long-term value for our stakeholders while upholding the highest standards of corporate governance and sustainability.”

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