Amid poor Q2 earnings, Deepak Fertilizers shares take a hit

3 Nov 2023 , 11:41 AM

In the afternoon on November 2, Deepak Fertilizers and Petrochemicals Corp.’s shares fell by almost 8% following the release of the company’s disappointing September quarter earnings.

From July to September, the company’s net profit dropped by 78% year over year to Rs 60.10 crore. Additionally, revenue suffered, falling to Rs 2,424 crore, down roughly 11% year over year.

The main reason for the poor earnings performance was the weak demand for fertilizers. A rise in financing expenses and expensive inventory also had an adverse effect on the business’s profitability.

Deeepak Fertilizers was trading 6% down at Rs 601 on the NSE at 2:55 PM on November 2. As 13 lakh shares have touched hands on the exchanges thus far, volumes at the counter have also increased significantly compared to the one-month daily traded average of 9 lakh shares.

The low demand for fertilizers was the primary cause of the unsatisfactory earnings performance. Expensive inventory and increased financing costs also negatively impacted the company’s profitability.

At 10:21 AM on the NSE, Deeepak Fertilizers was up 1.69% at Rs 604 in trading. 

For feedback and suggestions, write to us at [e-mail]