Deepak Fertilisers at new high on robust Q3 results, gains 60% in 1 month

The company's consolidated net profit doubled to Rs 181 crore in Q3FY22 from Rs 89 crore

Shares of Deepak Fertilisers and Petrochemicals Corporation hit a new high of Rs 597.80, up 5 per cent on the BSE in Tuesday’s intra-day trade, and in the process was up as much as 16 per cent in the last three days after the company reported robust results for the quarter ended December 2021 (Q3FY22).

In the past one month, the stock has zoomed 60 per cent, as compared to 0.74 per cent gain in the S&P BSE Sensex. At 10:04 am; the stock traded 4 per cent higher at Rs 593, as against 1.4 per cent rise in the S&P BSE Sensex. The counter recorded huge volumes with a combined 1.2 million equity shares changing hands in first 45 minutes of trade.

In Q3FY22, the company’s consolidated net profit doubled to Rs 181 crore from Rs 89 crore, on healthy operational income. Revenue from operations grew 35 per cent year-on-year (YoY) at Rs 1,956 crore as against Rs 1,447 crore in Q3FY21.

Operating earnings before interest tax and depreciation and amortization (EBITDA) for the quarter came in at Rs 352 crore, up 62 per cent YoY with corresponding EBITDA margin at 18.0 per cent, up 300 bps YoY.

The management said net profits during the quarter doubled owing to significant margin expansion in chemicals segment; whilst fertiliser segment faced challenges due to uncertainties around raw material availability and costs.

Operating profit continued to build on growth momentum despite unfavourable raw material prices impacting Iso Propyl Alcohol and Fertiliser segment profitability, the company release stated.

Mining chemical business delivered an outstanding quarter; outlook remains encouraging supported by increase in mining and infrastructure related activities. Market leadership in key product segments and strong demand outlook to strengthen business growth and profitability, the release added.