Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q1 2025 earnings summary

Executive summary

• Q1 FY25 EBITDA margin rose to 20.4% from 12% YoY, with net profit up 76% YoY to INR 200 crore, driven by improved operational efficiency and lower input costs.

• Q1 FY25 revenue was INR 2,281 crore, a slight YoY decline due to lower commodity prices, but cost management and government support aided margins.

• NCLT Mumbai approved the demerger, paving the way for three focused entities: chemicals, crop nutrition, and mining chemicals.

• Strategic restructuring aims to enhance business focus, attract global investors, and improve visibility.

• Unaudited standalone and consolidated financial results for Q1 FY25 were approved by the Board, with no material misstatements found by auditors.

Financial highlights

• Q1 FY25 operating revenue was INR 2,281 crore; operating EBITDA reached INR 464 crore, up 66% YoY; net profit was INR 200 crore, up 76% YoY.

• Consolidated revenue from operations for Q1 FY25 was ₹2,28,133 lakhs, with net profit after tax at ₹19,965 lakhs, up from ₹11,362 lakhs YoY.

• Operating EBITDA margin improved to 20.4%, up 8.23 percentage points YoY.

• Finance cost increased 40% YoY to Rs.111 crore; net profit margin improved by 384 bps YoY.

• SGST incentives for the ammonia plant contributed INR 35 crore this quarter.

Outlook and guidance

• Mining chemicals (TAN) business expects continued strong demand, supported by coal and steel sector growth and new capacity expansions.

• Crop nutrition business anticipates a good Kharif season due to above-normal monsoon and new product launches.

• Ammonia and nitric acid pricing expected to improve, with the company well positioned for growth.

• Ramp-up of new TAN and nitric acid capacities expected in H2 FY26, with initial utilization at 70-80%, rising to 90-100%.

• National Budget duty changes on Ammonium Nitrate and precious metals expected to have a positive impact.