EBITDA improved Y-o-Y from Rs.290 Cr to Rs. 740 Cr driven by Chemicals Segment

Pune, India, August 02, 2022: Deepak Fertilisers And Petrochemicals Corporation Limited, one of India’s leading producers of industrial chemicals and fertilisers, announces its results for the quarter ending June 30, 2022.

DFPCL reported robust top line growth and margin enhancement primarily driven by Chemical segment. Chemicals Segment contributed about 87% of total segment profits. Chemicals revenues doubled to Rs. 1,771 Cr and margins expanded from 19% in Q1 FY22 to 41% in Q2 FY23.

Fertilisers segment revenues grew by 26% y-o-y although segment margins were impacted on account of sharp increase in raw material prices. Operating EBITDA Margins increased from 15.2% in Q1 FY22 to 24.3% in Q1 FY23.

Key Announcements:

Debottlenecking of TAN capacity by approx. 33,000 MT and NPK capacity by about 2,00,000 MT through process improvement of the existing plants at Taloja.
Launched Croptek Cotton and maize grade in the kharif season; Mahadhan Croptek received ‘Golden Peacock Award’ under ‘Golden Peacock Innovative Product/Service Award 2022’
ICRA has upgraded DFPCL and STL “Long Term” Credit Rating to AA- with Stable outlook. “Short Term” Credit Rating is also affirmed to A1+ (Highest Rating)

Commenting on the performance, Mr. Sailesh C. Mehta, Chairman & Managing Director: “We have continued our strong operational performance in Q1 FY2023 on the back of improved margins in Chemical segment This persistent business performance is a result of our long-term strategic initiatives, strong market positioning and favourable market conditions.

During the Quarter:

1. We experienced strong revenue growth driven by all business segments.

2. As part of overall corporate transformational journey from ‘product to solutions’ and ‘commodity to specialty’:

a. CNB launched Croptek Cotton and maize grade in the kharif season

b. TAN business volume supported by continued demand from Explosives Manufacturing & Coal Segment, higher and improved capacity utilization of Forward Integration cartridge explosives plant and capacity debottlenecking

3. Chemical product portfolio delivered growth in sales volumes as well as significant margins expansion. Fertiliser segment revenue increased significantly although margins impacted due to uncertainties around cost pass-throughs and subsidies.