Deepak Fertilisers and Petrochemicals Corporation Ltd, an Indian chemicals manufacturer announced its results for the third quarter and nine months ended Dec 31, 2022.
Q3 Results- QoQ
The company’s net profit dropped by 8.3% to Rs 2.49 billion for the period ended Dec 31, 2022 as against net profit of Rs 2.71 billion for the previous quarter.
Net sales marginally grew by 1.4% to Rs 27.85 billion during the period ended Dec 31, 2022 as compared to Rs 27.46 billion during the previous quarter.
Q3 Results- YoY
The company reported 38.8% increase in net profit to Rs 2.49 billion for the period ended Dec 31, 2022 as against net profit of Rs 1.79 billion for the prior-year quarter.
Net sales grew 41.2% to Rs 27.85 billion during the period ended Dec 31, 2022 as compared to Rs 19.72 billion during the prior-year quarter.
9 Months – YoY
The company reported 140% growth in net profit to Rs 9.55 billion for the period ended Dec 31, 2022 as against net profit of Rs 3.98 billion for the prior-year 9 months period.
Net sales increased 50.8% to Rs 85.73 billion during the period ended Dec 31, 2022 as compared to Rs 56.84 billion during the 9 months period last year.
The company announced that it has signed a contract with the Gujarat State Petroleum Corporation (GSPC) for the supply of natural gas for a period of three years for its upcoming ammonia project.
Under the Brent Index-linked contract, Gujarat State Petroleum Corporation will supply 16.44 million MMBTU of natural gas for three years effective from May 1, 2023.
With the signing of this contract, the company has secured around 40% of the gas requirement for its ammonia project.
Deepak Fertilisers is setting up an ammonia manufacturing project at Taloja near Mumbai at an estimated cost of Rs 14.75 billion. The projected capacity of the plant is 520,000 tonnes.
The group in November last year also announced a deal with Aarti Industries for a 20-year supply arrangement for Nitric Acid worth Rs 80 billion. Nitric Acid is a critical building block intermediary chemical for the specialty chemicals sector.
Deepak Fertilisers last month said that the group under its new corporate restructuring plan was aiming to put in place a transformative strategy for all of its three businesses — industrial chemicals, fertilisers, and mining chemicals. The group is looking at a demerger in which each business can be housed in separate corporate entities. Deepak Fertilisers and Petrochemicals Corporation Ltd is an Indian chemicals manufacturing company engaged in the manufacture and fertilisers and petrochemicals.