homebusiness Newscompanies NewsDeepak Fertilisers Q3 Result: Revenue jumps 40% led by both businesses, signs contract with GSPC
Deepak Fertilisers Q3 Result: Revenue jumps 40% led by both businesses, signs contract with GSPC
Deepak Fertilisers is setting up an ammonia manufacturing project at Taloja near Mumbai at an estimated cost of Rs 1,475 crore.
Deepak Fertilsiers revenue and net profit grew over 40 percent from last year for the December quarter led by both its Chemical as well as Fertilisers business.
The company's operating profit also increased nearly 31 percent from the year-ago period. However, the margin declined 130 basis points due to higher other expenses. Brokerage firm IIFL was looking for margin to improve year-on-year.
While Deepak Fertilisers' Chemicals business saw revenue growth of 36 percent, the company's fertiliser business saw revenue increase by 50 percent from last year.
Additionally, the company announced that it has signed a contract with the Gujarat State Petroleum Corporation (GSPC) for the supply of natural gas for a period of three years for its upcoming ammonia project.
Under the Brent Index-linked contract, Gujarat State Petroleum Corporation will supply 16.44 million MMBTU of natural gas for three years effective from May 1, 2023.
With the signing of this contract, the company has secured around 40 percent of the gas requirement for its ammonia project.
Deepak Fertilisers is setting up an ammonia manufacturing project at Taloja near Mumbai at an estimated cost of Rs 1,475 crore. The projected capacity of the plant is 5.20 lakh tonnes.
The group in November last year also announced a deal with Aarti Industries for a 20-year supply arrangement for Nitric Acid worth Rs 8,000 crore. Nitric Acid is a critical building block intermediary chemical for the specialty chemicals sector.
Deepak Fertilisers last month said that the group under its new corporate restructuring plan was aiming to put in place a transformative strategy for all of its three businesses -- industrial chemicals, fertilisers, and mining chemicals. The group is looking at a demerger in which each business can be housed in separate corporate entities.
Shares of Deepak Fertilisers ended 3.7 percent higher at Rs 654.35.
(Edited by : Rukmani Krishna)
First Published: Feb 2, 2023 4:55 PM IST
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