Deepak Fertilisers and Petrochemicals on Thursday reported a threefold year-on-year jump in net profit to Rs 272 crore during the September quarter, driven by growth in the chemicals segment. Revenues grew by 51.7% to Rs 2,719.3 crore, while Ebitda was at Rs 495 crore, a jump of 133.3%.
The company’s profit margins were at 10%, an increase of 480 bps. The company said this was its best Q2 and H1 performance with this year’s half-yearly profits crossing fully-year profits of FY22.
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Sailesh C Mehta, chairman and managing director, Deepak Fetilisers, said despite huge raw material price hikes, their pass-through remained healthy. “The drive from commodity to speciality continued to support premium margins and brand consolidation in the mining and pharma chemicals and crop nutrition business,” Mehta said.
The company said it was fast-tracking project execution for the ammonia and TAN expansion projects.
The chemical segment revenues during Q2FY23 increased by 55% to Rs 1,533 crore, while the segment profit rose by 193% to Rs 434 crore. The fertilisers segment revenues grew by 47% y-o-y with margins of 7%.