homebusiness Newscompanies NewsUnseasonal rains hit chemical and fertilizer sector: Deepak Fertilizers
Unseasonal rains hit chemical and fertilizer sector: Deepak Fertilizers
DFPCL posted strong quarterly earnings with revenue rising 52 percent and margin expanding to over 18 percent. However, there was some weakness when compared sequentially.
The unseasonal and excessive rains impacted the chemical as well as fertilizer sector with a little shift this time, said Shailesh C Mehta, CMD at Deepak Fertilizers and Petrochemical Corporation (DFPCL). He, however, believes that this should even out by the end of the year.
Mehta was referring to the seasonally weak quarter for the chemical segments.
DFPCL posted strong quarterly earnings with revenue rising 52 percent and margin expanding to over 18 percent. However, there was some weakness when compared sequentially.
Typically, quarter two of the financial year was a lean quarter for the company too.
"The topline of the company has jumped 52 percent and the bottomline has jumped 192 percent over the last year. First half of the year has surpassed the whole of last year. So, from that perspective it is a very strong positive traction that is emerging," Mehta said.
"The industry has witnessed a huge price hike on the raw material side and the company has been very successful in passing it through to the customers. That is the reason the delta has improved over the last year," he explained.
The revenues from the ammonia plant are expected to kick in from May 2024.
Once this kicks in, the company is expected to cross the revenue of Rs 15,000 crore in next two-three years. There are three projects, which will aid this revenue going forward, he said.
The peak debt of the company should be around Rs 5,000 crore.
For the full interview, watch the accompanying video
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