Stock Market Today: Deepak Fertilizers and Petrochemicals Corporation The share price has gained 9-10% in the last two trading sessions. Deepak Fertilizers is trading at 1-year high on Tuesday.
but the stock closed at 1216 BSE On Wednesday.
Strong Q2 performance-
The second quarter performance remained strong as net profit during the July-September quarter registered a 237% year-on-year increase. While its topline is 2747 increased by 13%, operating EBITDA increased by 73%. Deepak Fertilizer highlighted that in the second quarter of the last 5 years, revenue and operating income before interest tax depreciation and amortization (Ebitda) have demonstrated a sustainable growth trend.
Deepak Fertilizers achieved 83% YoY growth in sales volume of manufactured bulk fertilizer, the highest sales in a single quarter.
A good monsoon season in the current year has also meant that sales of fertilizers and crop protection have received a boost.
4 key strategic initiatives are being taken to advance the prospects
Shailesh C. Mehta, Chairman and Managing Director, Deepak Fertilizers and Petrochemicals Corporation, highlighted four key strategic initiatives of the company that will improve growth prospects.
1.Deepak Fertilizers and Petrochemicals Corporation has aligned its growth plans with India’s growth story especially in coal, cement, real estate and horticulture.
2. Backward integration in ammonia manufacturing means improved margins while the company is no longer dependent on imported raw materials.
3. With the introduction of crop based nutrition schemes special focus has been provided and the business is no longer a pure commodity based business.
4. With NCLT approval for demerger of various businesses like mining chemicals, crop nutrition business and industrial chemicals, the demerger is likely to be completed this year.
Additionally, the expectation of government anti-dumping duty on IPA for five years is positive and may also lead to positive margins.
The development of two projects – technical ammonium nitrate facility and enhancement of nitric acid capacity will also enhance market leadership and support operations also shared.
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