Deepak Fertilisers slips on weak June quarter results

The stock dipped 7% to Rs 166 after reporting 7% yoy decline in net profit at Rs 40 crore for the quarter ended June 2014.

Deepak Fertilisers and Petrochemicals has slipped 7% to Rs 166 on the National Stock Exchange (NSE) after posting 6.7% year-on-year (yoy) decline in net profit at Rs 40 crore for the quarter ended June 2014, mainly due to higher operational cost. The company had profit of Rs 43 crore in the same quarter last year and Rs 91 crore in March quarter.

Net sales of the company grew 27% to Rs 945 crore, while total expenses increased by 29% to Rs 871 crore over the previous year quarter.

Deepak Fertilisers said the performance of the company during the quarter was adversely affected on account of abrupt stoppage of gas supply to its plant at Taloja consequent to a decision by Ministry of petroleum and Natural Gas.

The gas stoppage also affected the utilities plants, thereby increasing the operating costs. Further subdued demand for technical ammonium nitrate impacted the segment results, it added.

The stock opened at Rs 178 and touched a low of Rs 166 on NSE. A combined 569,000 shares changed hands on the counter so far on NSE and BSE.