Shares of Deepak Fertilizers and Petrochemicals Corporation Ltd hit an upper circuit level of 5% to 52-week high for the third consecutive session on the BSE. 782 Apr in Tuesday’s trading session after announcing its Q1 FY23 earnings last week.
Deepak Fertilizers jumped more than three times in consolidated net profit on Friday 435.6 crore on strong sales in the first quarter ended June quarter. it was a net profit 130.6 crore in the year-ago period. The company’s total income increased by more than 59% 3,042 crore in the April-June period as against 1,908 crore in the same quarter last year.
Its operating EBITDA margin increased to 24.3% in Q1 FY23 from 15.2% in Q1 FY22. The company said its strong top line growth and margin growth is primarily driven by chemical section.
The company’s chemicals segment contributed about 87 per cent of the overall segment profits as chemical revenues doubled 1,771 crore and margins rose to 41%, while the revenue of the fertilizer segment grew by 26% in the year-ago period, though segment margins were impacted due to sharp rise in raw material prices.
“We have continued our strong operating performance in Q1 FY 2023 on the back of better margins in the Chemicals segment. This consistent business performance is the result of our long-term strategic initiatives, strong market position and favorable market conditions.” Deepak FertilizersChairman and Managing Director (CMD) Shailesh C Mehta.
His core command area is witnessing high reservoir level and suitable monsoon coverage. He said consumption is expected to pick up in the second quarter of this year, supported by higher commodity prices for cash crops due to strong climatic conditions.
Mehta also said changes in product mix, head room availability of additional capabilities emerging from better operations management and de-constraints along with greenfield expansion are expected to underpin long-term growth.
Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) is one of the leading producers of fertilizers and industrial chemicals in India. Deepak Fertilizers gave share multibagger returns More than 400% over the past two years, meanwhile the chemical stock is up nearly 95% so far in 2022 (YTD).
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