Deepak Fertilisers Q1 profit jumps over 3-fold to Rs 435 crore

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Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Friday posted an over three-fold jump in consolidated net profit to Rs 435.66 crore in the June quarter on strong sales.

Its net profit stood at Rs 130.63 crore in the year-ago period, according to a regulatory filing.

Total income increased by 59.45 per cent on a consolidated basis to Rs 3,042.28 crore in the April-June period of the 2022-23 fiscal against Rs 1,907.97 crore in the same period of last year.

Expenses remained higher at Rs 2,392.82 crore compared to Rs 1,717.56 crore in the said period. Expenses remained higher at Rs 2,392.82 crore compared to Rs 1,717.56 crore in the said period.

Deepak Fertilisers Chairman and Managing Director Sailesh C Mehta said, "We have continued our strong operational performance in Q1 FY 2023 on the back of improved margins in the Chemical segment.”

This persistent business performance is a result of our long-term strategic initiatives, strong market positioning and favourable market conditions, he said.

"Higher reservoir levels and appropriate monsoon coverage in our core command region is being witnessed. Consumption in the second quarter of this year is expected to increase supported by higher commodity prices for cash crops due to robust climatic conditions,” he added.

Mehta also said that long-term growth is expected to be underpinned by change in product mix, head room availability of additional capacities emerging from better operational management and de-bottlenecking along with greenfield expansions.

Shares of the company closed 4.99 per cent up at Rs 709.65 apiece on Friday.