Deepak Fertilisers slumps after poor Q2 financial performance

Deepak Fertilisers & Petrochemicals Corporation lost 7.11% to Rs 184.90 at 10:27 IST on BSE after net profit declined 4.77% to Rs 26.96 crore on 14.23% fall in net sales to Rs 932.71 crore in Q2 September 2016 over Q2 September 2015.

The announcement was made after market hours yesterday, 17 November 2016.

Meanwhile, the BSE Sensex was down 48 points, or 0.18%, to 26,179.62

On BSE, so far 43,000 shares were traded in the counter, compared with an average volume of 53,145 shares in the past one quarter. The stock hit a high of Rs 195.60 and a low of Rs 177.50 so far during the day. The stock hit a record high of Rs 253.45 on 16 September 2016. The stock hit a 52-week low of Rs 128.15 on 17 February 2016. The stock had underperformed the market over the past 30 days till 17 November 2016, falling 10.05% compared with 6.28% decline in the Sensex. The scrip, however, also outperformed the market in past one quarter, rising 10.12% as against Sensex's 6.59% fall.

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

Deepak Fertilisers & Petrochemicals Corporation said that the company witnessed marginal growth in chemical business, however, recorded subdued performance in fertilisers because of higher carryover stocks in the country and comparatively lower volumes in ammonium nitrate due to seasonal slowdown with delayed and extended monsoons. The combined negative impact in the fertiliser sector emerging out of the delayed monsoons, inventory build- up from earlier quarter and sudden price cuts impacted the performance in Q2 September 2016, Deepak Fertilisers & Petrochemicals Corporation said. Good rainfalls followed with brisk sales and lowering of raw material costs should help improve the workings of the subsequent quarters, the company said. The softening of raw material prices, specially ammonia, would help the company combat global competition, it added.

Sailesh C. Mehta, Chairman & Managing Director, Deepak Fertilisers & Petrochemicals Corporation said that after two consecutive droughts, the country witnessed good monsoons in the current year. The company is poised for achieving smooth production with restoration of full scale water supply and is optimistic with respect to outlook for demand growth across all businesses, Sailesh C. Mehta said.

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

Powered by Capital Market - Live News