Deepak Fertilisers Q1 net down 22% Rs 35 cr

Firm says delayed monsoon led to water cuts, impacting output and prompting farmers to defer fertiliser purchases

Pune based Deepak Fertilisers and Petrochemicals Corporation has recorded a net profit of Rs 34.72 crore, down 22 per cent pver Rs 45 crore in the same quarter last year. The performance has been impacted by delayed monsoon till early July, leading to extensive water cuts, which not only impacted production but also prompted farmers to defer fertiliser procurement, the company said in a statement.

The total income has also witnessed a marginal shortfall of Rs 1,127.56 crore in the quarter ended June 30, 2016 compared with Rs 1,044.87 crore in the same period last year.

One reason for lower profits in the first quarter this year is the fact that in the same quarter last year, profits included a non-standard dividend receipt of ?Rs 27.5 crore arising out of the sale of Mangalore Chemicals and Fertilisers' shares, the release said.

"With the onset of good monsoon and favourable developments on gas and subsidy, current aberrations are likely to pass over in the balance part of the year. The new NPK facilities are slated to be commissioned in Q3 which will enlarge our holistic basket of micronutrient enriched fertilisers. Also the company's chemical business will see a strong growth arising out of the nitric acid expansion project," Sailesh Mehta, chairman and managing director, DFPCL, said.

The company is, however, optimistic about improvement in performance in the second quarter and rest of the year.