Deepak Fert net up at Rs 79.75 cr in '04-05

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(Article first published in Business Line, 10^th March 2005)

PUNE: Deepak Fertilisers and Petrochemicals Corporation Ltd registered its highest ever profit before tax (PBT) of Rs 112.46 crore on total revenues of Rs 500.95 crore for FY 2004-05.

The company declared a dividend of 25 per cent plus a 5 per cent special dividend (totalling 30 per cent) in its Silver Jubilee year. Net profit for the yearrose 14 per cent to Rs 79.75 crore against Rs 69.72 crore in the previous financial year. Debt cost was reduced to an average of 7.4 per cent, from 10.99 per cent, owing to the repayment of high cost debts.

The fourth quarter sales were 8 per cent higher, at Rs 144.74 crore, against Rs 134.44 crore for the corresponding quarter of FY04.

The company's chemicals business, which includes methanol, nitric acid, ammonium nitrate, and liquid CO2, remained the primary growth driver for the financial year with sales of ammonium nitrate and methanol growing 17 per cent and 20 per cent, respectively over the FY04 levels.

The company said ammonium nitrate sales crossed the one-lakh-tonne milestone and effectively serviced the needs of the core sector in mining.

The Managing Director, Mr. Sailesh Mehta, said the company has now put together a business model based on a techno-commercial customer focus in chemicals, and a recasting of the fertiliser business into a larger agri-services/solutions framework. Deepak Fertiliser's portfolio will soon emerge with a synergistic balance between industrial chemicals, agri-services/solutions, mining solutions and the services sectors.

"The company is now poised to achieve global standards of productivity and efficiency with a manpower rationalisation exercise reducing headcount by 26 per cent. During FY05, the 9 MW co-generation and the automatic bagging plants were commissioned, to help gain further cost-efficiencies," Mr Mehta said.

The Dahej-Uran pipeline project, which is under implementation by GAIL India, and the KG Basin gas when available on the West coast should improve the situation substantially, he said.

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