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HomePosts Tagged "DFPCL"
Agribusiness, Agro chems – Fertilizers, Company News, Finance, India

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.

Company’s Crop Nutrition Business (CNB) achieved a

Agribusiness, Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, India

During Q4 2024, company has posted net profit of Rs 220 crore compared to Rs 257 crore in Q4 FY 2023, reflecting a decline of 14.7 per cent.

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial chemicals and fertilisers, announced its consolidated results for the fourth quarter and fiscal year ended March 31, 2024.

During Q4 2024, DFPCL has posted net profit of Rs. 220 crore compared to Rs 257 crore in Q4 FY 2023, reflecting a decline of 14.7 per cent. On QoQ basis, DFPCL’s Q4 PAT registered 262.8 per cent growth as PAT in Q3 FY24 stood at Rs 61 crore.

n Q4 FY24, DFPCL has reported Operating Revenue of Rs. 2,086 crore as compared to Operating Revenue of Rs. 2,796 crore in Q3 FY23. The company’s Operating Revenue stood at Rs. 1,853 crore in Q3 FY24.

For the Financial Year ended March 31, 2024, DFPCL has posted net profit of Rs 457 crore as compared to Rs. 1,221 crore for the Financial Year ended March 31, 2023, reflecting a drop of 62.5 per cent. During FY 2024, the company posted Operating Revenue of Rs 8,676 crore as compared to Rs. 11,301 crore resulting in a de-growth of 23.2 per cent.

Commenting on the performance, Sailesh Mehta, Chairman & Managing Director, DFPCL, said, ““The company has shown resilience and strategic focus despite the Chemical and Fertilisers segment facing challenges simultaneously. Short-term aberration in the import of fertilizer-grade ammonium nitrate from Russia, low cost Nitroaromatics from China and below normal rainfall in our core markets impacted business performance.  Despite the odds the company has delivered healthy performance with sustained margins, driven by innovation, operational excellence, and sustainability.”

 Mehta also mentioned that we have entered into a 15-year long-term gas supply agreement with Equinor, commencing in May 2026. This move will ensure continuous supplies of Natural Gas and is expected to improve margins through effective natural gas/LNG hedging and in-house ammonia production, ensuring greater stability.

We also signed a Commercial agreement with Haifa Group, a renowned multinational corporation specializing in Specialty Crop Nutrient. The MAL-Haifa offerings will support agricultural practices that counter the vicious trend of water scarcity and also enhance Nutrient Uptake & Use Efficiency in the plants.

For FY 24-25, the demand outlook for all our business segments looks positive. ‘IMD’ has forecasted above average normal rainfall in FY25, expecting a good Kharif and Rabi season this year.

During Q4 2024, company has posted net

Agro chems – Fertilizers, Collaborations, Company News, India

This agreement is for annual supplies of up to 0.65 million tonnes over a period of 15 years, beginning 2026. 

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial chemicals and fertilisers, and Equinor, an international energy company headquartered in Norway, have entered into a long-term supply agreement for Liquefied Natural Gas (LNG).

With this tie-up, DFPCL strengthens its value chain with an attractive long-term LNG contract to solidify its value chain from Gas to Ammonia to various downstream Fertilisers, Industrial Chemicals and Mining Chemicals. This end-to-end tie-up shall establish a strong long-term foundation for all of DFPCL’s product segments.

Equinor, erstwhile Statoil, is amongst the established leaders in the oil & gas sector over the last 50 years, with a market cap of USD 75 Billion wherein majority shares are owned by the Norwegian Government.

The agreement signed by Irene Rummelhoff, Executive Vice President, Equinor and Sailesh C. Mehta, Chairman & Managing Director, DFPCL, is one of the largest contracts signed by Equinor with a private sector company in India.

This agreement is for annual supplies of up to 0.65 million tonnes over a period of 15 years, beginning 2026.  The tie-up provides room for trading some LNG parcels in the growing LNG demands in India as well as accommodating DFPCL’s growing captive needs. The LNG will be delivered to the west coast of India. DFPCL is at an advanced stage of tying up the Re-gasification Terminal with the Gas pipeline grid connectivity to its plant’s doorstep already in place.

The LNG agreement also encourages the companies to further collaborate on petrochemicals feedstocks and strategic decarbonization pathways in the future.

“We are very happy to enter into this long-term agreement with Equinor for supply of LNG. This will put on a solid footing Deepak Fertilisers value-chain right from Gas to Ammonia to building block Nitric Acids to downstream Fertilisers, Mining Chemicals and Industrial Chemicals, helping it to absorb Global volatility as well as enhance overall margins.  We also look forward to exploring with Equinor, strategic tie-ups in our Chemical Business, as well as carbon footprint reduction initiatives.” said Sailesh C. Mehta, Chairman & Managing Director, DFPCL.

“I am happy that we have entered into this agreement with Deepak, and it is an example of how we use our position in the Atlantic basin to strengthen our relationship with key players in the growing Indian market. Ammonia is a key building block for the society, being crucial for agriculture and food security. Deepak’s new ammonia plant will provide new, domestic fertiliser supply to India and we are proud to provide its feedstock in the form of natural gas. We look forward to further developing our relationship with Deepak on feedstocks and low carbon initiatives in the future”, says Equinor’s Senior vice president for Gas & Power Helge Haugane.

This agreement is for annual supplies of

Company News, India, Supply Chain

A landmark and first of its kind long term association between two Indian chemical majors to augment each other’s business needs

Aarti Industries Ltd (AIL) and Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPCL) have signed a binding term sheet for a 20-year period for offtake and supply of Nitric Acid. The parties plan to execute the formal agreement before the close of this calendar year. The supply arrangement comes into effect from April 1, 2023.

DFPCL is the largest manufacturer of Nitric Acid in South East Asia and AIL is one of the largest Nitric Acid consumers in India. This arrangement is a landmark and first of its kind long term association between two Indian chemical majors to augment each other’s business needs and mutual interests. The deal provides specific volume commitments with supply or pay, take or pay obligations by either party thereby providing adequate assurance, financial security and protecting either party’s commercial interests.

The deal benefits AIL by way of a long-term supply security for a key raw material. This would meet a majority of AIL’s requirements. It also helps AIL have a greater assurance in sourcing the key RM from DPFCL, who is an existing and the largest integrated nitric acid producer in India with multiple production sites. AIL, being a manufacturer for specialty chemical and downstream products, the present deal provides a strong supply security and enables AIL to focus on future growth opportunities, introduction of new value-added products and value chains for niche applications.

DFPCL, along with its subsidiaries, is the largest player in India for Nitric Acid and has a capacity of about 8.9 Lakhs MT for WNA and 2.3 Lakhs MT per annum for CNA. DFPCL is a market leader in the Crop Nutrition, Mining Chemicals & Industrial Chemicals sectors.

A landmark and first of its kind

Agro chems – Fertilizers, Environment, India, Sustainability

Initiative to help farmers adopt best practices in soil nutrition, climate-resilient farming

The Asian Development Bank (ADB) has announced that it would fund the farm efficiency initiative of Smartchem Technologies Limited (STL), a wholly-owned subsidiary of Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL), through a $30 million loan facility with a tenor of 5 years. This is ADB’s first agribusiness ‘Blue Loan’, and the first such blue loan in India in the agribusiness sector across institutions. The loan will be used to finance capital expenditure as well as research and development of enhanced-efficiency speciality fertilisers.

STL was chosen as a suitable candidate for Asian Development Bank (ADB) support because of its leading market position in the enhanced efficiency specialised fertilisers (EESF) segment, with advanced technical capability and satisfactory financial performance. Growth potential from the enhancement of fertiliser production capacity to provide quality inputs.

Actions to encourage the application of EESFs, which will support the sustainable transformation of agriculture in India while improving its resilience to climate change.

ADB has also given approval for a technical assistance grant of $5,00,000 for building capacity for Soil Nutrition Management among Smallholder Farmers and Climate Resilience in India. The said grant is in addition to financing of $30 Million (“Blue loan”).

Enhanced-efficiency speciality fertilisers have shown increased output while reducing the need for fertiliser application rate and also reduces environmental impact and supports Nutrient uptake efficiencies and thus delivers better productivity leading to improved food security.

Initiative to help farmers adopt best practices