Deepak Fertilisers shares surged as much as 7.78 per cent in the early trade on Tuesday after the company said Ministry of Chemicals and Fertilizers has agreed to release about Rs 485 crore outstanding subsidy payment to the company.
At 9.45 am, shares of Deepak Fertilisers & Petrochemicals Corporation were trading 5.81 per cent up at Rs 163.80. The scrip opened at Rs 163 and has touched a high and low of Rs 166.85 and Rs 163, respectively, in trade so far.
Later, the scrip closed 4.52 per cent up at Rs 161.80.
In a BSE Filing, the company said, “The Department of Fertilizers has been withholding subsidy claims due to the company in accordance with applicable Nutrient Based Subsidy Scheme of the Government of India, since June, 2014 amounting to Rs 795 crores as on March 31, 2016.”
The company had since challenged the said withholding before Bombay High Court and the Department has now informed commencing the release of all subsidy arrears except an amount of Rs 310.52 crores in the interim. This part withholding is already under court’s purview for final award.
For the quarter ended March 31, 2016, the company reported a net profit of Rs 25.92 crore, down 4.81 per cent, against Rs 27.23 crore in the corresponding quarter last year.