Deepak Fertilisers & Petrochemicals Corp Ltd (BOM:500645)
₹ 1,597.2 -5.65 (-0.35%) Market Cap: 201.63 Bil Enterprise Value: 252.55 Bil PE Ratio: 27.35 PB Ratio: 2.95 GF Score: 70/100

Q2 2025 Deepak Fertilisers and Petrochemicals Corp Ltd Earnings Call Transcript

Oct 30, 2024 / 10:30AM GMT
Release Date Price: ₹1216.55 (-1.39%)

Key Points

Positve
  • Consolidated revenues grew by 13% to over INR2,700 crore for the quarter.
  • EBITDA increased by 73% to approximately INR494 crore, with margins improving from 12% to 18%.
  • Net profit surged by 237% to INR214 crore for the quarter.
  • The company's backward integration into ammonia production is proving to be a strong risk mitigator and value capturer.
  • The strategic shift from commodity to specialty products, supported by strong R&D, is gaining market acceptance and improving product efficacy.
Negative
  • The mining and chemicals business experienced a downturn due to monsoon-related disruptions.
  • Nitric acid volumes slightly decreased by 1% year-on-year, and IPA volumes fell by 10% due to process constraints and shutdowns.
  • The company is still facing high debt levels, with plans to draw additional debt for ongoing projects.
  • There are concerns about potential pricing pressure in the technical ammonium nitrate segment due to new capacity additions by competitors.
  • The real estate venture remains non-core and does not significantly contribute to the company's financials.
Operator

Ladies and gentlemen, good day. And welcome to the Deepak Fertilizers and Petrochemical Corporation Limited Q2 FY25 earning conference call hosted by Phillip Capital, India Private Limited.

As a reminder, all participant line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone.

Please note that this conference is being recorded. I now hand the conference over to Mr. Harmish Desai from Phillip Capital India Private Limited. Thank you and over to you, sir.

Harmish Desai
Phillip Capital India Private Limited - Analyst

Thank you Nikita. Good evening and welcome to the second quarter and half year f 525 earnings scholar, Deepak Fertilizer and Petrochemicals Limited hosted by Philip Capital from the management. We have Mr Sailesh Mehta, Chairman and managing director, Mr Deepak Rastogi, President and Chief Financial Officer, Mr Tarun Sna

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