Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q4 96/97 earnings summary

Executive summary

• Sales including other income reached Rs29,827.14 lakh in FY1996-97; profit before tax was Rs3,317.87 lakh and profit after tax Rs2,915.66 lakh.

• Plants ran at high capacity utilisation and several production records were set; gas pricing, raw-material availability and regulated fertilizer pricing constrained prospects.

Financial highlights

• Net sales excluding excise and sales tax were Rs29,298.42 lakh vs Rs27,492.68 lakh; other income was Rs528.72 lakh vs Rs598.93 lakh.

• Profit before depreciation was Rs6,538.61 lakh vs Rs5,655.03 lakh; profit before prior-years’ adjustments was Rs4,083.52 lakh vs Rs3,340.91 lakh.

• Profit before tax was Rs3,317.87 lakh vs Rs3,348.70 lakh; profit after tax was Rs2,915.66 lakh vs Rs3,347.70 lakh.

• Prior-years’ adjustments reduced FY1996-97 profit by Rs765.65 lakh; the prior year recorded a net credit of Rs7.79 lakh.

Outlook and guidance

• Ammonia plant shutdown was shifted to FY1997-98 for efficiency improvements and a marginal capacity increase; completed revamp work was expected to cut ammonia energy use by about 2%.

• A 450 MTPD ammonia capacity revamp was under study; feasibility work was underway to raise ANP capacity to 1,000 MTPD.

• Additional natural-gas requirements had Ministry of Chemicals & Fertilisers support and awaited Ministry of Petroleum approval.

• No dividend was recommended pending the Government’s policy decision on a steep increase in administered gas prices.