Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q4 99/00 earnings summary

Executive summary

• FY99/00 revenue rose 14% to Rs.596.97 crore and net profit increased to Rs.58.33 crore from Rs.54.36 crore, despite lower operating profit.

• Higher ANP and bulk-fertiliser sales supported revenue; gas shortages, higher fuel costs and fertiliser-policy uncertainty weighed on operations.

Financial highlights

• Revenue, including other income, was Rs.596.97 crore vs. Rs.521.79 crore; net sales excluding excise and sales tax were Rs.585.62 crore vs. Rs.509.92 crore.

• Operating profit fell to Rs.118.42 crore from Rs.144.24 crore; profit before tax rose to Rs.67.22 crore from Rs.62.86 crore.

• Net profit was Rs.58.33 crore vs. Rs.54.36 crore; EPS rose to Rs.7.81 from Rs.7.28 and CEPS to Rs.10.92 from Rs.10.41.

• Interim dividend of 20% was paid; no further dividend was recommended.

Outlook and guidance

• Ammonia-plant retrofit was completed by end-March 2000, expected to increase capacity and reduce energy use; third DNA plant stream was expected to start in July/August 2000.

• ANP expansion studies were underway; improved gas supply was being pursued to raise plant utilisation.

• A fertiliser subsidy withdrawal and transition toward an open market were anticipated; specialty, higher-margin products and fuller plant utilisation were strategic priorities.