Deepak Fertilisers jumps as Govt to release outstanding subsidy

Deepak Fertilisers & Petrochemicals Corporation rose 6.20% to Rs 164.40 at 9:24 IST on BSE after the company said that the Department of Fertilizers will release about Rs 484.75 crore outstanding subsidy payment to the company.

The announcement was made after market hours yesterday, 13 June 2016.

Meanwhile, the BSE Sensex was up 25.74 points, or 0.10%, to 26,422.51.

On BSE, so far 42,000 shares were traded in the counter, compared with an average volume of 13.03 lakh shares in the past one quarter. The stock hit a high of Rs 166.85 and a low of Rs 163 so far during the day. The stock hit a 52-week high of Rs 173.25 on 13 May 2016. The stock hit a 52-week low of Rs 113.95 on 15 June 2015. The stock had underperformed the market over the past one month till 13 June 2016, falling 8.54% compared with 3.56% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.39% as against Sensex's 7.52% rise.

The small-cap company has an equity capital of Rs 88.20 crore. Face value per share is Rs 10.

In a regulatory filing, Deepak Fertilisers informed that that the ministry has been withholding subsidy claims due to the company in accordance with applicable Nutrient Based Subsidy (NBS) Scheme of the Government of India since June 2014 amounting to Rs 795 crore as on 31 March 2016. The company had since challenged the said withholding before the Bombay High Court and the department has now informed commencing the release of all subsidy arrears except an amount of Rs 310.52 crore in the interim. This part withholding is already under court's purview for final award.

Net profit of Deepak Fertilisers & Petrochemicals Corporation declined 4.81% to Rs 25.92 crore on 17.05% rise in net sales to Rs 1080.68 crore in Q4 March 2016 over Q4 March 2015.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) is among India's leading producers of industrial chemicals and fertilisers.

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