Latest news with #DeepakFertilisers
Yahoo
26-05-2025
- Business
- Yahoo
Deepak Fertilisers & Petrochemicals Corp Ltd (BOM:500645) Q4 2025 Earnings Call Highlights: ...
Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Deepak Fertilisers & Petrochemicals Corp Ltd (BOM:500645) reported a 28% increase in Q4 top line and a 21% increase in bottom line, with the full year top line growing by 18% and bottom line doubling by 102%. The company's strategic focus on moving from commodity to specialty products is gaining traction, with specialty products now contributing 22% of total revenue. The crop nutrition business has shown significant growth, with crop-specific fertilizers and specialty fertilizers like water-soluble fertilizers contributing to increased sales and customer retention. The company has successfully reduced net debt by 120 crores, improving the net debt-to-EBITDA ratio to 1.72 from 2.66, and has infused 800 crores into its subsidiary, Deepak Mining Solutions. Deepak Fertilisers & Petrochemicals Corp Ltd (BOM:500645) is well-positioned to benefit from the India growth story, with projects aligned to infrastructure and mining sectors, and plans to enhance capacities in nitric acid and technical ammonium nitrate. The company's industrial chemicals segment faced challenges due to an IPA plant shutdown, impacting profitability. There is a perplexity regarding the valuation of the company's mining business compared to the overall company valuation, indicating potential undervaluation of other segments. The company faces capacity constraints in nitric acid production, limiting growth in the technical ammonium nitrate segment. Despite strong financial performance, the company is still below its 2022-2023 turnover and bottom line figures, indicating room for improvement. The company anticipates peak debt levels to reach around 5,000 crores due to ongoing CapEx projects, which could impact financial flexibility in the short term. Warning! GuruFocus has detected 5 Warning Sign with BOM:500645. Q: What is the current ammonia pricing and what was the annual savings in FY25 from the ammonia plant? A: The current price of ammonia is around $330. The savings are not specified separately for ammonia as we have an integrated supply chain. Our EBITDA break-even is around $310 to $320. Q: What would be the peak debt levels over the next two years considering the upcoming CapEx? A: We are nearing the end of our current CapEx cycle. The debt level is currently around 3,300 crore and we expect it to peak at around 5,000 crore. By FY26, the peak debt could be 5,000 crore, after which we expect deleveraging as new facilities start contributing to cash flow. Q: Why have other expenses increased, and why is the chemical business segment earnings down in Q4? A: The increase in other expenses is primarily due to the growth in the CNB business, which has high freight costs. The chemical business segment earnings are down due to an IPA shutdown, impacting profitability. Q: What are the expected incremental ROC and utilization levels for the new nitric acid and downstream projects? A: We expect a healthy ROC of 18-20% for the new projects. Utilization is expected to be 70% in the first year, reaching 80-85% for optimal ROC. Q: How do you view the competition and demand for ammonium nitrate given new entrants in the market? A: The current demand for ammonium nitrate is around 1.4 million tons, with existing capacity at 1 million tons, indicating a supply gap. The demand is growing at 6-7% annually, providing room for new players. We have unique advantages such as strategic location and experience, which will help us maintain our market position. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
22-05-2025
- Business
- Business Standard
Deepak Fertilisers records over 21% YoY growth in Q4 PAT to Rs 278 crore
Deepak Fertilisers & Petrochemicals Corporation reported 21% rise in consolidated net profit to Rs 278 crore on a 28% increase in operating revenue to Rs 2,667 crore in Q4 FY25 as compared with Q4 FY24. EBITDA improved by 10% to Rs 480 crore in the fourth quarter from Rs 438 crore recorded in the same period last year. EBITDA margin fell by 299 basis points year-over-year (YoY) to 18% in Q4 FY25. Profit before tax in Q4 FY25 stood at Rs 320 crore, up by 8% from Rs 296.36 crore in Q4 FY24. For FY25, Deepak Fertilisers has registered a consolidated net profit of Rs 945 crore (up 102% YoY) and operating revenue of Rs 10,274 crore (up 18% YoY). The company said that in the CNB business, bulk fertilizers manufactured sales volume in Q4 surged by 68% YoY, driven by increased adoption of its innovative crop focus nutrient solution. During FY25, the company achieved a significant milestone by surpassing 1 million MT in bulk fertilizer sales and liquidation for the first time. In the TAN business, the companys speciality product, LDAN, saw an impressive 11% YoY growth in sales volume in Q4 FY25, and a notable 15% YoY increase for the entire fiscal year. Despite capex spent of Rs 655 crore in FY25, net debt reduced from Rs 3,426 crore to Rs 3,305 crore based on healthy cash generation. Net debt to EBIDTA reduced from 2.66x to 1.72x on YoY basis. S.C. Mehta, chairman and managing director of DFPCL, stated: This year has been challenging yet transformative, marked by strategic actions that boosted growth across all product segments. Our shift from a commodity focus to a specialty and solutions-led company is well underway. Specialty products now comprise 22% of our total operating revenue, up from 17% in FY24, with a 51% YoY growth. Crop-focused fertilizers constitute 30% of our portfolio, reaffirming our commitment to delivering differentiated, customer-first solutions. FY 202526 is poised to be a pivotal yearone that will prepare us for a major operational leap, with key capacity expansions nearing completion by H2 FY26. These expansions will elevate us as one of the global leader in Technical Ammonium Nitrate and Building Block Nitric Acid. To ensure financial robustness, we raised ₹800 crore via CCDs in our subsidiary, DMSL, strengthening our balance sheet and addressing near-term funding needs while maintaining a prudent debt ratio. With an above-average monsoon forecast, we expect robust Kharif season demand for crop-specific solutions. Mining Chemicals growth from FY25 is likely to continue into FY26, driven by increasing power demand and infrastructure investments. The health sector is projected to expand, supported by government and private initiatives, boosting our Pharma / Specialty Chemicals portfolio. Deepak Fertilisers and Petrochemicals Corporation (DFPCL) is among the Indias leading manufacturers of industrial chemicals and fertilisers. With a strong presence in technical ammonium nitrate (mining chemicals), industrial chemicals and crop nutrition (fertilisers), the company supports critical sectors of the economy such as infrastructure, mining, chemicals, pharmaceutical and agriculture. The scrip had declined 2.25% to end at Rs 1338 on the BSE.
Economic Times
22-05-2025
- Business
- Economic Times
Deepak Fertilisers Q4 Results: Cons profit rises on robust demand
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's Deepak Fertilisers and Petrochemicals posted a 23.2% rise in quarterly profit on Thursday, supported by strong demand for its crop nutrition company's consolidated net profit rose to 2.77 billion rupees ($32.2 million) in the fourth quarter , from 2.25 billion rupees a year and chemicals each contribute nearly half of the company's revenue, which rose 27.9% in the quarter to 26.67 billion rupees. Revenue from the fertilisers business rose nearly 89%, while that from chemicals declined 4.9%.For further earnings highlights, click [here]Analysts said fertilisers companies such as Deepak Fertilisers outperformed their agrochemical peers in the fourth quarter, as volume growth, price hikes and demand for complex fertilisers lifted agrochemical firms, which continue to face demand volatility in both domestic and export markets, fertilizers are showing resilience in (next 12 Estimates (next 12 Analysts' sentiment months) months)RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div growth (%) growth (%) rating* analyst price yields target** (%)Deepak Fertilisers 16.70 8.81 10.69 17.14 Buy 1 0.95 0.62 and Petrochemicals Coromandel 32.18 20.28 7.29 29.24 Buy 9 1.01 0.50 International SRF 49.25 24.46 13.69 45.53 Hold 27 1.06 0.24 Sumitomo Chemical 41.00 30.15 17.78 22.69 Buy 7 0.91 0.17 India* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT-- All data from LSEG IBES-- $1 = 86.0225 Indian rupees
Reuters
22-05-2025
- Business
- Reuters
India's Deepak Fertilisers posts quarterly profit rise on robust demand
May 22 (Reuters) - India's Deepak Fertilisers and Petrochemicals ( opens new tab posted a 23.2% rise in quarterly profit on Thursday, supported by strong demand for its crop nutrition products. The company's consolidated net profit rose to 2.77 billion rupees ($32.2 million) in the fourth quarter, from 2.25 billion rupees a year earlier. Fertilisers and chemicals each contribute nearly half of the company's revenue, which rose 27.9% in the quarter to 26.67 billion rupees. Revenue from the fertilisers business rose nearly 89%, while that from chemicals declined 4.9%. For further earnings highlights, click [here] KEY CONTEXT Analysts said fertilisers companies such as Deepak Fertilisers outperformed their agrochemical peers in the fourth quarter, as volume growth, price hikes and demand for complex fertilisers lifted profitability. Unlike agrochemical firms, which continue to face demand volatility in both domestic and export markets, fertilizers are showing resilience in demand. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG IBES -- $1 = 86.0225 Indian rupees
Business Upturn
22-05-2025
- Business
- Business Upturn
Sanghvi Movers secures Rs 49.5 crore project from Deepak Fertilisers
By Aditya Bhagchandani Published on May 22, 2025, 13:39 IST Sanghvi Movers Ltd announced on Thursday that it has bagged a major work order worth Rs 49.50 crore from Deepak Fertilisers and Petrochemicals Corporation Ltd. The contract has been awarded under the company's Project EPC Business Vertical. According to the stock exchange filing, the scope of work includes project management and engineering, along with structural erection, piping, and heavy equipment erection. The duration of the contract is eight months, scheduled to commence in May 2025 and conclude by January 2026. This is a domestic order and does not fall under related party transactions. Sanghvi Movers clarified that its promoters or promoter group have no interest in Deepak Fertilisers, the awarding entity. The company stated the deal reinforces its positioning in the project EPC space, particularly in structural and heavy lifting works for industrial clients. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
