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Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) today reported a 25 per cent dip in net profit to Rs 40.64 crore for the quarter ended September 30.
The company, which also produces industrial chemicals, had posted a net profit of Rs 53.90 crore in the year-ago period, it said in a filing to the BSE.
Net sales of DFPCL rose by 20 per cent to Rs 631.16 crore in the second quarter this fiscal compared to Rs 574.34 crore in the same quarter of 2011-12 fiscal.
The total expenditure incurred by the Pune-based company rose by 28 per cent to Rs 638.07 crore in July-September quarter of 2012-13 fiscal from Rs 498.92 crore in the same quarter last fiscal.
The company said that its margins were impacted due to high costs of ammonia and it expects to pass on the high raw material costs to the consumers gradually.
“There is a likelihood of ammonia prices easing in Q4 since some global plants, whose commissioning was either delayed or were down for technical reasons, should come on line in Q3 and Q4, FY’13,” Sailesh C Mehta, Vice-Chairman and Managing Director, DFPCL said.
Some pressure on margins is expected for another quarter.
In the longer term with new ammonia capacities coming on line in the US with shale gas, global ammonia prices should soften, he added.
The company manufactures complex fertilisers and also produces speciality chemicals and bio-fertilisers, among other products.
Shares of DFPCL today rose by 0.91 per cent to settle at Rs 133 a piece from its previous close at the BSE.
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