Deepak Fertilisers Q4 Net down 5pc at Rs 25.92 cr

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New Delhi | Published: May 26, 2016 8:11:48 PM

Deepak Fertilisers today reported a 5 per cent decline in net profit at Rs 25.92 crore for the fourth quarter of 2015-16 financial year.

The company had reported a net profit of Rs 27.23 crore in the same period of 2014-15 fiscal. (Source: Website)The company had reported a net profit of Rs 27.23 crore in the same period of 2014-15 fiscal. (Source: Website)

Deepak Fertilisers today reported a 5 per cent decline in net profit at Rs 25.92 crore for the fourth quarter of 2015-16 financial year.

The company had reported a net profit of Rs 27.23 crore in the same period of 2014-15 fiscal.

Total income of the company grew by 17 per cent to Rs 1,086.75 crore for the quarter ended March from Rs 930.95 crore in the corresponding quarter of the previous financial year, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) said in a statement.

Performance for the quarter was largely affected by the ongoing water crisis in Maharashtra, which impacted the volumes of all the manufactured products as the Taloja plant was being operated on staggered basis, despite better demand, favourable market condition and conducive raw material prices.

“We expect better performance in the next few quarters due to forecast of favourable monsoons and growing industrial activities. Our NPK expansion plan is on track and we expect its positive impact in this financial year,” DFPCL Chairman and MD Sailesh C Mehta said.

For the year 2015-16, the company’s total income grew to Rs 4,258.72 crore from Rs 3,711.77 crore in the previous year. Consequently, the net profit grew by 55 per cent to Rs 121.13 crore from Rs 78.35 crore.

The company said it has moved court to challenge commercial terms of a gas supply offer from GAIL.

As the proposed commercial terms of the offer were not in conformity with the direction of the court, the company has challenged it before the court, DFPCL said.

High Court of Delhi vide successive orders, directed the government to resume supply of natural gas.

Pursuant to this, GAIL offered to resume gas supply but at higher tariff rate, not matching to the domestic gas prices, it added.

It said that gas supply to the company was stopped from 15 May, 2014 pursuant to an arbitrary and discriminatory order of petroleum Ministry.

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