Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q4 04/05 earnings summary

Executive summary

• FY05 delivered record PBT of ₹112.46 crore and net profit of ₹79.75 crore; the 25% regular dividend plus 5% special dividend totaled 30%.

• Performance reflected higher methanol and ammonium nitrate sales, despite natural-gas shortfalls that constrained production in several plants.

Financial highlights

• Revenue including other income was ₹500.95 crore vs ₹496.30 crore in FY04; PBT was ₹112.46 crore vs ₹97.42 crore and net profit ₹79.75 crore vs ₹69.72 crore.

• Reported EPS was ₹9.04 vs ₹9.06 in FY04; EPS excluding extraordinary items was ₹8.54 vs ₹9.87.

• Net sales were ₹478.17 crore; other income was ₹22.78 crore. Profit before depreciation was ₹138.87 crore and depreciation ₹31.11 crore.

Outlook and guidance

• Fertiliser strategy shifts toward total nutrient management, seeds and farmer services; management expects the division to reach profitability over a three-year horizon.

• Iso-propyl alcohol project was expected to start up in Q4 FY06; a further US$20 million ECB was raised in Q1 FY06 for its capital expenditure.

• Plans include raising ammonium nitrate capacity toward globally comparable levels and expanding from bulk products into technical, customised mining solutions and specialty chemicals.