Deepak Fertilisers and Petrochemicals Corporation (DFPC) reported a 7.8% year-on-year growth in its consolidated net profit to Rs 131 crore and a 37% year-on-year growth in revenues to Rs 1,902 crore in the June quarter.
Revenues from the chemical business increased by 15.6% to Rs 906 crore with segment margins of 19% while the fertiliser revenues rose by 66.6% to Rs 994 crore with margins of 19%. The company said finance costs reduced by 22% y-o-y due to improved working capital management and continuous reduction of short-term debt. Its net debt fell by Rs 240 crore.
Sailesh C Mehta, CMD, DFPC, said despite the persistent challenges posed by the second wave of Covid-19 the company maintained a steady growth trajectory in operational and business performance. Improvement in collections and better inventory management enabled reduction in the net debt position substantially at the end of Q1FY22, Mehta said.
The company had received nutrient based subsidy approval from the government for crop specific grades, which would be introduced in the next rabi season. The company said it had achieved the highest-ever quarterly ANP & NPK production.