Mumbai, India, November03, 2020 – Deepak Fertilisers And Petrochemicals Corporation Limited, one of India’s leading producers of Industrial Chemicals and Fertilisers, announces its results for the quarter and half year ended September30, 2020.
Commenting on the performance, Mr. Sailesh C. Mehta, Chairman & Managing Director, Deepak Fertilisers And Petrochemicals Corporation Limited, said:
“Despite the continued operational challenges faced due to the COVID-19 pandemic, we witnessed improvement in overall economic activity on a pan India level as lockdown restrictions were eased and normalcy returned partially. Heavy rainfall during Q2 has ensured optimal water levels across major reservoirs in core areas where we operate.We expect a good rabi season which might get slightly delayed as we witnessed above average rainfall during the tail end of the monsoon season.
I say this with immense satisfaction, that our Company continues to progress well both on financial and operational fronts. We have been continuously striving towards enhancing profitability by focusing on high margin businesses along with the cost optimization initiatives. We are pleased to announce a strong financial performance during the first half of FY2020-21.
We continued to connect virtually with farmers and our team did a phenomenal job of reaching key stakeholders through digital means and we achieved robust sales volumes of our differentiated grade Smartek offerings in Q2.Our CNB business reported fourth consecutive profitable quarter in a row.
IPA demand tapered down after it rose to unprecedented levels in Q1 in expected line. We continue to focus on specialised grades and service offerings to the pharma industry which will help even out the margin impact in the IPA segment.Our health and hygiene products under the brand CORORID are gaining popularity and we are working on plans to systematically push the brand across segments.
Demand for Nitric Acid improved to pre-Covid levels and so did the realisations. We expect strong traction the next two quarters for CNA segment fuelled by encouraging demand for chemical intermediates used across pharma, agrochemicals and polymers.
TAN segment faced challenges primarily on demand front due to monsoon and Covid impact,however, the contribution margins remained in line with the expectations.Demand for coal and limestone mining is expected to improve in Q3 as the economic activity picks up and we expect revival for TAN segment in the second half of the financial year.
We remain profitably aligned to the Indian growth story by supporting critical sectors of the economysuch as agriculture, pharmaceuticals, mining,infrastructure, health and hygiene, amongothers.Capex outlay, that were undertaken few years back, have now started bearing fruits and expected to grow in the coming quarters.
Recent reforms announced by the Central Government under the Atmanirbhar Bharat initiative augurs well for the economic growth trajectory of India and should positively support growth across our business verticals”
Segment Performance Q2 FY21 vs Q2 FY20