Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q1 2025 earnings summary

Executive summary

• EBITDA margin rose to 20.4% from 12% YoY, with net profit up 76% to INR 200 crore in Q1 FY25, reflecting improved operational efficiency and lower raw material costs.

• Q1FY25 revenue was INR 2,281 crore, a marginal 1.4% YoY decline due to lower commodity prices.

• Strategic demerger approved, splitting chemical, crop nutrition, and mining chemicals into separate entities for sharper business focus and investor visibility.

• National Budget changes on Ammonium Nitrate and catalyst duties, and government support for fertilizer subsidies, are expected to positively impact future performance.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board on 31 July 2024.

Financial highlights

• Total operating revenue for Q1 FY25 was INR 2,281 crore; operating EBITDA reached INR 464 crore, up 66% YoY.

• Net profit for the quarter was INR 200 crore, a 76% increase YoY; consolidated net profit after tax was ₹19,965 lakhs, up from ₹11,362 lakhs in Q1 FY24.

• EBITDA margin improved by 823 bps YoY to 20.4%; net profit margin rose to 8.8% from 4.9% YoY.

• SGST government incentives for the ammonia plant contributed INR 35 crore this quarter.

• Basic and diluted consolidated EPS for the quarter was ₹15.49, up from ₹8.72 in Q1 FY24.

Outlook and guidance

• TAN business to expand capacity by 50,000 tons by September and a new 376,000-ton plant at Gopalpur expected in FY27.

• Above-normal monsoon and new product launches expected to drive fertilizer sales; specialty chemicals and pharma-grade IPA expected to see volume growth.

• Ammonia and nitric acid prices expected to improve, supporting margin stability.

• Mining Chemicals demand expected to remain strong, driven by coal, power, and infrastructure sectors.

• The Board is focused on strategic growth and unlocking value through business restructuring and demerger initiatives.