Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q4 00/01 earnings summary

Executive summary

• FY2000-01 revenue fell to Rs.489.99 crore from Rs.596.97 crore, while operating profit rose 24% to Rs.147.20 crore and net profit increased 7.5% to Rs.62.70 crore.

• Higher industrial-chemical realizations partly offset lower fertilizer sales and constrained production from natural-gas shortages; a 25% dividend was recommended, versus 20% in FY1999-00.

Financial highlights

• Total sales were Rs.473.03 crore, including Rs.348.75 crore from own-manufactured products and Rs.124.28 crore from traded products; other income rose to Rs.16.96 crore from Rs.11.34 crore.

• PBT was Rs.84.48 crore versus Rs.67.22 crore; profit before extraordinary items was Rs.90.86 crore versus Rs.62.55 crore. PAT reached Rs.62.70 crore versus Rs.58.33 crore.

• Extraordinary items were a net pre-tax expense of Rs.6.37 crore, including Rs.4.26 crore provision for an unrealized DAP insurance claim and Rs.2.77 crore rollback of financing concessions.

Outlook and guidance

• Expected steep natural-gas price increases and continued shortages were forecast to pressure profitability and constrain capacity utilization; LNG availability was considered feasible by 2004.

• Planned responses included imported-ammonia port storage, downstream debottlenecking, broader ammonia sourcing including a possible overseas plant, and forward integration into industrial chemicals.

• A food-grade liquid CO2 and dry-ice plant using vented CO2 was expected to be commissioned by August 2001.