Deepak Fertilisers And Petrochemicals Corporation Ltd., (DFPCL) announced that profit from operations before other income, interest and exceptional items grew 35% to Rs512.2mn for Q3 FY10 from Rs378.2mn for Q3 FY09. Net profits including exceptional items for Q3 FY10 grew to Rs528.6mn from Rs223.8mn for Q3 FY09. Income from Operations for the quarter under review stood at Rs3.66bn in Q3 FY10 against Rs3.71bn in Q3 FY09.
Revenue from the Chemicals business grew 22% from Rs1.74bn in Q3 FY09 to Rs2.13bn in Q3 FY10 with good gains in prices and a growth in volumes across almost all the Company’s Chemicals products. Revenues from the agri-business stood at Rs1.57bn in Q3 FY10 against Rs1.95bn in Q3 FY09. Though the volumes of manufactured Nitrophosphate fertilisers and Bentonite Sulfur improved during the quarter compared to the corresponding quarter of previous year, net revenue was lower for bulk fertilisers with fall in global prices reducing the cost based subsidy with no impact in the profitability.
For the nine months ended December 2009 Income from Operations stood at Rs9.64bn against Rs10.79bn for Apri-December 2008, while Profit from Operations before Other income, interest and exceptional items stood at Rs1.5bn against Rs1.64bn for the previous comparable nine month period. Net profits grew 17% to Rs1.27bn for Q3 FY10 against Rs1.09bn in Q3 FY09.
DFPCL’s Vice Chairman and Managing Director, S. C. Mehta said, “We are seeing steady prices and good increases in volumes in the chemicals business. Capacity utilisation in fertilisers has also improved considerably. With gas now available from a variety of sources we are now moving toward full capacity utilisation in the coming years. Our capacity enhancements done through retrofits in the Ammonia and TAN business are now beginning to pay off as is the value accruing from the new capacity addition in Nitric Acid. DFPCL is now clearly poised for growth”.
Prices in chemical sector have firmed up and has been steady. Work on the new chemical project to support the mining sector is proceeding as per schedule with commissioning expected in the latter half of FY11. The new plant should help the Company derive both economies of scale and create entry barriers for new entrants into the Indian market for the product.
With the retail sector now gradually having come out of the global economic meltdown, Ishanya’s prospects for the future are clearly improving. Ishanya’s new leasing models that include revenue share arrangements with key tenants will improve income prospects over the medium-term. The plans to fine tune the Ishanya business by offering synergistically aligned products that make it a complete family destination are now moving forward swiftly and dates for the launch of the new avatar of Ishanya should be announced in the next few months. Ishanya has a 90% brand recall in its key catchment areas according to market research and is now clearly established as a shopping destination in Pune.