Deepak Fert Q1 net may fall 32% at Rs 34 cr: Emkay
Emkay Equity Advisory expects Deepak Fertilizers to report a 17.3 percent growth quarter-on-quarter (fall of 32.4 percent year-on-year) in net profit at Rs 34.2 crore.
August 07, 2013 / 18:35 IST
Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the chemical sector. The brokerage house expects Deepak Fertilizers to report a 17.3 percent growth quarter-on-quarter (fall of 32.4 percent year-on-year) in net profit at Rs 34.2 crore.
Revenues are expected to increase by 0.8 percent Q-o-Q (up 4.8 percent Y-o-Y) to Rs 664.3 crore, according to Emkay Equity Advisory.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 19.7 percent Q-o-Q (down 18 percent Y-o-Y) to Rs 83.8 crore.EBITDA margin or operating profit margin is likely to be at 12.6 percent in June quarter as against 10.6 percent in March quarter and 16.1 percent in a year ago period.Emkay Equity Advisory report on Deepak FertilizersWe expect company's revenues to grow marginally by 5 percent driven by both fertiliser and chemical segments. However drop in chemical segment's margins to put pressure on profitability as chemical segment margins are likely to drop by 900bps to 11 percent driven by input cost pressure. High Ammonia prices to have adverse impact on chemical segment. Fertiliser segment margins to remain stable. Resulting we expect EBITDA margins to drop by 350bps to 12.6 percent and EBITDA to decline by 18 percent Y-o-Y. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
