The shares of Deepak Fertilisers and Petrochemicals Corporation jumped 17% to ₹ 1,314 on Wednesday. This fast was seen after the company’s brilliant quarterly results. In the December quarter (Q3Fy25), the company’s profit increased by 318% to ₹ 253 crore, which was just ₹ 61 crore in the same quarter last year. The company has strong operational results behind this magnificent performance.
Tremendous growth in revenue and profit
The total revenue of Deepak Fertilisers increased by 39% to ₹ 2,579 crore. At the same time, EBITDA (earlier earnings before interest, tax, depression and ametration) rose 72% to ₹ 486 crore. The company’s Ebitda margin also increased from 15% to 19%, which further strengthened profits.
Heavy trading in stock, close to 52 weeks high
By the end of trading, Deepak Fertilisers shares were trading at ₹ 1,275 with a gain of 13.97%, while BSE Sensex rose only 0.8% during this period. The trading volume also rose 9 times, including NSE and BSE, about 6.5 million shares were sold and sold. The company’s stock touched a 52-week high of ₹ 1,443.35 on 9 December 2024.
Management opinion on future growth
The company is expected to benefit from investment-based growth and strong economic policies in India.
Which factor will promote growth?
- Increasing demand in mining chemicals: Increasing needs in coal, cement and infrastructure sector in India will strengthen the company’s mining chemicals business.
- Support Crop Nutrition Business: Increasing income and increasing consumption of fruits and vegetables will benefit the company’s fertilizer business.
- Growth in industrial chemicals: Industrial chemical business will support the China Plus One Strategy and the increasing demand for specialty chemicals.
What will happen next?
The company says that the growth of mining chemicals in Q4Fy25 will be stronger, as this quarter traditionally is a peak season of mining and infrastructure activity. This is expected to increase the demand for TAN (Technical Ammonium Nitrate) products.
At the same time, the demand for nitric acid and margin is likely to remain stable, but due to cheap Chinese nitroaromatics, there is a slight volatility in the market. However, the proper-based IPA margin can gradually increase due to the decrease of anti-dumping duty (add) and phenol-Benzene spreads.