Company’s Crop Nutrition Business (CNB) achieved a remarkable 83 per cent YoY increase in sales volume of manufactured bulk fertilizer, which is highest ever sales.
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial and mining chemicals and fertilisers, announced its results for the quarter ended September 30, 2024. Company’ s EBITDA Margin improved to 18 per cent compared to 12 per cent year-over-year. Company’s Crop Nutrition Business (CNB) achieved a remarkable 83 per cent YoY increase in sales volume of manufactured bulk fertilizer, which is the highest ever sales.
Commenting on the performance, Sailesh C. Mehta, Chairman & Managing Director said, DFPCL has shown impressive performance in Q2 FY25, achieving a 13 per cent growth in revenue. This growth was primarily driven by the Crop Nutrition business, which experienced an 18 per cent YoY increase in revenue, while the Chemical business grew by 8 per cent YoY despite a lean quarter for the chemical sectors.
“Fertilizer and Chemical businesses acted as a natural hedge, enabling the company to deliver consistent and improved performance.
“There has been a consistent increase in the proportion of revenue from specialty products, along with an overall rise in revenue, driven by the strategic move of transitioning from commodity to specialty,” says Mehta.
The ammonia plant has enabled all our businesses to reap substantial benefits from backward integration, effectively mitigating supply chain risks and price volatility. As a result, we are now able to capture the increases in global ammonia prices within the group.
As India continues to grow, the chemical and fertilizer sectors are poised to thrive. The demand outlook for the Crop Nutrition, Mining Chemicals, and Industrial Chemicals Business is well aligned with India’s growth story, providing strong and positive tailwinds. We are actively working on the execution of the TAN Project and the Nitric Acid Project in Gopalpur and Dahej, respectively, to capitalize on future growth.
Crop Nutrition Business (Fertilisers) Review
In Q2 FY25, manufactured bulk fertilizer has achieved highest ever sales volume of 268 KMT, an 83 per cent YoY increase, driven by improved demand from above-average rains, which led to 102% Kharif crop sowing and positive market sentiment across all regions.
Sales volume of Croptek surged to 37 KMT, reflecting a 70 per cent YoY growth, with continued focus on providing crop-specific solutions for targeted crops, including cotton, soybean, sugarcane, corn, grapes, pomegranate, and banana.
The company has recently launched premium water-soluble fertilizer grades. Sale of specialty fertilizer Bensulf was 9 KMT, up 7 per cent YoY.
