Deepak Fertilizers & Petrochemicals Corp Ltd Share Price – NSE  /  BSE

Chemicals, Small Cap

Equinor is the largest exporter of pipeline gas to Europe and operator of Europe’s only large-scale LNG plant at Hammerfest, Norway. Equinor, erstwhile Statoil, is amongst the established leaders in the oil & gas sector over the last 50 years, with a market cap of $75 billion wherein majority shares are owned by the Norwegian Government.

With this tie-up, DFPCL strengthens its value chain with an attractive long-term LNG contract to solidify its value chain from gas to ammonia to various downstream fertilisers, industrial chemicals and mining chemicals.

This agreement is for annual supplies of up to 0.65 million tonnes over a period of 15 years, beginning 2026. The tie-up provides room for trading some LNG parcels in the growing LNG demands in India as well as accommodating the company’s growing captive needs. The LNG will be delivered to the west coast of India.

Sailesh C. Mehta, chairman & managing director, DFPCL, said, “We are very happy to enter into this long-term agreement with Equinor for supply of LNG. This will put on a solid footing Deepak Fertilisers value-chain right from Gas to Ammonia to building block Nitric Acids to downstream Fertilisers, Mining Chemicals and Industrial Chemicals, helping it to absorb Global volatility as well as enhance overall margins. We also look forward to exploring with Equinor, strategic tie-ups in our Chemical Business, as well as carbon footprint reduction initiatives.”

Helge Haugane , senior vice president for gas & power, Equinor, said, “Ammonia is a key building block for the society, being crucial for agriculture and food security. Deepak’s new ammonia plant will provide new, domestic fertiliser supply to India and we are proud to provide its feedstock in the form of natural gas. We look forward to further developing our relationship with Deepak on feedstocks and low carbon initiatives in the future.”

Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.

The company’ consolidated net profit declined 76.9% to Rs 57.56 crore in Q3 FY24 as compared with Rs 249.44 crore posted in Q3 FY23. Net sales fell 32.7% YoY to Rs 1,852.64 crore in Q3 FY24.

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Net profit of Deepak Fertilizers & Petrochemicals Corp declined 76.92% to Rs 57.56 crore in the quarter ended December 2023 as against Rs 249.44 crore during the previous quarter ended December 2022. Sales declined 32.75% to Rs 1852.64 crore in the quarter ended December 2023 as against Rs 2754.76 crore during the previous quarter ended December 2022.

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Deepak Fertilizers & Petrochem. Corp. will hold a meeting of the Board of Directors of the Company on 1 February 2024.

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Revenue from operations declined 10.85% year on year (YoY) to Rs 2,424.16 crore in the quarter ended 30 September 2023.

Consolidated profit before tax stood at Rs 422.02 crore in Q2 FY23, sliding 72.33% from Rs 116.77 crore posted in corresponding quarter last year.

Operating EBITDA de-grew 42.22% YoY to Rs 286 crore while EBITDA margin slipped to 11.8% in Q2 FY24 from 18.2% in Q2 FY23.

On segmental front, revenue from Fertilizers segment's rose 5.76% YoY to Rs 1,248.83 crore while Chemicals segment revenue de-grew 23.65% YoY to Rs 1,170.28 crore and realty business reported a 36.56% decrease at Rs 3.61 crore in the period under review.

Sailesh C. Mehta, Chairman & Managing Director commented, “While the last year comparative base was unusually on higher side, DFPCL performance in Q2FY24 underscores our resilience and adaptability under varied market volatilities and geopolitical challenges. Our Mining Chemicals segment demonstrated remarkable growth, achieving record sales volumes despite seasonal slowdowns and pricing pressures from dumping of cheap Russian products as they faced global embargo.

IPA witnessed strong demand in Q2, although Nitric Acid had subdued demand due to low priced Chinese pharma / agro intermediary oversupplies impacting our downstream sectors. CNB also saw good demand driven by innovative product offerings and crop-specific solutions, although fertiliser profitability was significantly impacted on account of reduction in NBS Subsidy.”

The net debt stood at Rs 2,672 crore as of 30 September 2023.

Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.

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