Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q2 24/25 earnings summary

Executive summary

• Consolidated revenues grew 13% year-over-year to INR 2,747 crores for Q2 FY25, with EBITDA up 73% to INR 494 crores and net profit rising 237% to INR 214 crores.

• Maintained market leadership in mining chemicals, industrial chemicals, and crop nutrition, with strong geographic and product diversification.

• Strategic focus on backward integration, specialty products, and major CAPEX projects underpins long-term growth.

• Board-approved demerger of mining chemicals and fertilizer businesses completed, enhancing focused leadership and enabling separate listings.

• Recognized with multiple awards for operational excellence, supply chain, and workplace culture.

Financial highlights

• Q2 FY25 operating revenue: INR 2,747 crores, EBITDA: INR 494 crores, net profit: INR 214 crores, all up significantly year-over-year.

• EBITDA margin improved to 18%, a 690 basis point increase year-over-year; PAT margin up to 8%.

• Net debt/EBITDA reduced to 1.64x; net debt/equity improved to 0.55x as of September 2024.

• Debt reduced by INR 200 crores through prepayment, with overall debt declining during the quarter.

• Cash profit for Q2 FY25: INR 314 crores, up 117% year-over-year.

Outlook and guidance

• Management expects the 18% EBITDA margin to be sustainable, with some cyclicality.

• Above-normal monsoon and improved groundwater support a strong Rabi season and crop nutrition business.

• Demand recovery expected in mining chemicals in Q3, supported by growth in coal, cement, and steel.

• Anti-dumping duty on IPA to support margins in industrial chemicals.

• Strategic CAPEX projects to commission in H2FY26, expanding capacity and global market position.