Latest news with #DeepakFertilisers&PetrochemicalsCorporation
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Business Standard
3 days ago
- Business
- Business Standard
Fertiliser stocks rally up to 18%; Deepak, Paradeep hit new highs
Shares of fertiliser companies were in demand and rallied up to 18 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes, in an otherwise weak market. Fertilizers and Chemicals Travancore soared 18 per cent to ₹1,048 apiece, National Fertilizers rallied 9 per cent to ₹109.94, followed by Rashtriya Chemicals and Fertilizers (RCF) (up 8 per cent at ₹164.20), Deepak Fertilisers & Petrochemicals Corporation (8 per cent at ₹1,594.10), Madras Fertilizers (6 per cent at ₹97.45) and Paradeep Phosphates (4 per cent at ₹183.50). Of these, Deepak Fertilisers & Petrochemicals Corporation and Paradeep Phosphates have hit their respective all-time highs today. In comparison, the BSE Sensex was down 0.7 per cent or 552 points at 80,822 at 02:24 PM. The performance of the fertiliser sector remains vulnerable to the vagaries of the monsoon as a sizeable portion of the arable land depends on the monsoons for irrigation. The performance of the fertiliser sector also remains vulnerable to the timely release of subsidies by the Government of India (GoI), as significant delays would increase the working capital borrowings and the associated interest costs. Early monsoon onset The Indian Meteorological Department (IMD) has predicted an early onset of the monsoon along with above-normal rainfall for the 2025 season. The southwest monsoon seasonal rainfall over the country as a whole is likely to be 106 per cent of the Long Period Average (LPA) with a model error of 4 per cent, indicating that above normal rainfall is most likely over the country as a whole during the monsoon season (June to September), 2025, IMD stated. Global triggers Meanwhile, the European Parliament approved a bill to raise tariffs on fertilisers and agricultural imports from Russia and Belarus. According to a CNBC TV18 report, the new policy will gradually increase tariffs on certain fertilisers from the current 6.5 per cent to nearly 100 per cent by 2028, effectively curbing imports from these two major suppliers. Additionally, a 50 per cent duty will be imposed on select agricultural products from the same region. The bill is expected to be enacted in July 2025, with phased implementation over the next three years. This move may potentially redirect global demand towards Indian manufacturers, the report stated. Urea demand remains intact Meanwhile, there is a favourable demand-supply scenario of urea in India. The import dependence for urea remains in the range of 20-25 per cent, given the inadequate domestic capacity. The demand for urea remains intact because of a significant price differential between urea and non-urea fertilisers. The demand is expected to grow at a stable rate of 1-3 per cent in the near to medium term, backed by a healthy monsoon and strong farmer demand, according to rating agency ICRA. According to Elara Capital, Rock phosphate, a key raw material used in the manufacturing of phosphoric acid, has seen a price increase in the range of 10-20 per cent in the past month. This price rise has been across geographies, including Jordan, Morocco, Togo, and Egypt. The increase in rock phosphate price was driven by the rise in the price of phosphoric acid, which was up ~10 per cent to USD 1153/tonne in April vs the last revision of USD 1060 in January. The brokerage firm expects the spread on phosphoric acid production to reduce by 25-30 per cent for manufacturers in India in H1FY26E. Lower backwards integration spread is likely to put pressure on Ebitda of fertiliser companies in H1FY26. A 45 per cent increase in subsidy for phosphate in Nutrient Nutrient-based subsidy (NBS) policy released on 28 March 2025 has led to a 13-17 per cent rise in Di-ammonium Phosphate (DAP) prices for imports into India. An increase in DAP prices led to a 10 per cent surge in the price of phosphoric acid, which has further led to a rise in the price of rock phosphate. Fertiliser inventory in India at the end of FY25 for both phosphatic & potassic fertiliser (P&K) and urea is at its second lowest level in the past six years (Source: Department of Fertiliser). P&K closing inventory stood at 4.3mn tonnes in FY25, which is the second-lowest during FY20- 25. Within this, DAP inventory stood at 0.9mn tonnes, the second-lowest level in the past six years. Urea inventory, yet again, was at the second-lowest level in the past six years, at a comfortable 5.6mn tonnes, the brokerage firm said in a sector report.
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.
