Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) has reported a net profit of ₹45.33 crore in Q1 2016 against ₹39.85 crore in Q115, growing 13.7 per cent mainly on the back of dividend income.
DFPCL’s total income in the three-month period under review grew by 13 per cent to ₹1,072 crore against ₹945 crore in the corresponding quarter of the previous fiscal.
Impacted by lack of gas supply, the company's operational profit from the agri-business was nearly half of that in the same period of last year. However, the profit for the quarter was lifted by other income, which includes dividend income of ₹27.50 crore, received from its wholly-owned subsidiary SCM Soilfert Ltd.
As of June 30, 2015, Soilfert’s holding in Mangalore Chemicals and Fertilisers (MCF) stood to nil following sale of 28.48 per cent equity holding in the company. The company had off-loaded its entire stake in MCF following its failed bid to acquire a controlling stake in it.
The company’s performance for the quarter continued to be affected by stoppage of domestic gas supply leading to shut down of the fertiliser plant since May last year, though in the last week of June 2015 it has started production of ANP fertiliser with the much costlier imported gas.
While agri-business segment profit stood at ₹14 crore against ₹27 crore last year, declining over 45 per cent, trading in fertilisers saw 134 per cent growth in revenue to ₹354 crore against ₹151 crore in Q1 FY-15.
Revenue from the chemicals segment, which accounts for around 65 per cent of its total business, grew marginally to ₹696 crore from ₹678 crore in Q1 FY-15, mainly due to strong demand for acids and TAN, while profit remained flat at ₹76 crore.
Earlier last month, the Delhi High Court directed the Department of Fertilizers to resume gas supply to the company (stopped since May 15, 2014), till the policy can be implemented on a non-discriminatory basis to all the manufacturers. The resumption of gas supply is awaited, DFPCL said.