Deepak Fert Q1 PAT may dip 18% at Rs 41.6 cr: P Lilladher

Prabhudas Lilladher has come out with its first quarter (April-June) earnings estimates for the chemical sector. The brokerage house expects Deepak Fertilizers to report a 42.9 percent growth quarter-on-quarter (fall of 17.6 percent year-on-year) in net profit at Rs 41.6 crore.

Revenues are expected to decrease by 2.7 percent Q-o-Q (up 1.2 percent Y-o-Y) to Rs 641.5 crore, according to Prabhudas Lilladher. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 22.3 percent Q-o-Q (down 16.2 percent Y-o-Y) to Rs 85.6 crore. EBITDA margin or operating profit margin is likely to be at 13.3 percent in June quarter as against 10.6 percent in March quarter and 16.1 percent in a year ago period. Prabhudas Lilladher report on Deepak Fertilizers We expect chemicals to report revenue growth of 14.0 percent Y-o-Y driven by higher chemical prices and trading revenues. On the fertiliser side, manufactured revenues are likely to decline by 12.5 percent Y-o-Y due to lower fertiliser prices. We expect manufactured fertiliser volumes to increase by 5 percent Y-o-Y. Trading revenues are expected to decline by 53 percent Y-o-Y due to lower volumes. Though we expect chemical margins to remain lower by 700bps on a Y-o-Y basis, they are expected to improve 170bps Q-o-Q due to softening of raw materials prices. We expect fertiliser margins at 9.0 percent (140bps Y-o-Y/-400bps Q-o-Q).