Deepak Fertilisers..... Moving beyond fertilisers

PAT at Rs 69.7 crore for 2003-04

Editor's Synopsis

Chemicals Business contributes 60% of total turnover

Acid business grows 11%

Ammonium Nitrate turnover jumps 23% over the previous year

Dividend payout maintained at 22%

Mumbai, May 20, 2004: Deepak Fertilisers' Chemical Business has logged an impressive 60% contribution to the total turnover of Rs.496.30 crore for 2003-04.

In the year 2003-04, the Acid business grew by around 11% boosted by the addition of Concentrated Nitric Acid capacity. The Ammonium Nitrate business jumped by 23% over the previous year. The consolidation of the Ammonium Nitrate business by way of acquisition of Smartchem Technologies Ltd. in December 2003 will appreciably add further to this segment in the current year.

Mr Sailesh C. Mehta, Managing Director, said, "The Company's end customer segments of Pharma, Speciality Chemicals and Mining lent a significant reduction on dependence in the fertiliser segment. "

He further added, "Our future growth strategy will be driven by non-regulated products. Isopropyl Alcohol project is progressing as per schedule. The captive power plant is expected to commission by September, 2004 this will help in substantial reduction in energy cost in the current year."

The Company saw a 8.75% jump in Profit After Tax to Rs 69.72 crore as compared to Rs 64.11 crore. While the trading volume dipped, bringing lower overall turnover of Rs.496 crore in comparison to Rs.546 crore in 2002-03, a better product mix ensured Rs. 148.25 crore in operating profits compared to Rs. 146.03 crore last year.

The Company suffered a 15% reduction in key raw material - Natural Gas supply, in the year under review. This perennial gas shortage problems will reduce substantially by middle of next year when the LNG pipeline from Dahej reaches Taloja. This situation will further improve with the Krishna Godavari Basin gas reaching the West Coast.

Keeping in view the various projects on hand, in the meeting held today, the Directors have decided to maintain the dividend rate to 22% as last year.

Projects in Pipeline

The captive power plant will be commissioned by September 30, 2004. The capital outlay estimated is Rs.48 crore. Substantially reducing the energy cost.

The company had announced plans to manufacture ISOPROPYL ALCOHOL (IPA) earlier this year. The plant of 70,000 metric tonnes per annum (MTPA) capacity is being set up at the company's existing manufacturing facility at Taloja. The total capital outlay for this project is estimated to be Rs 204 crore. The project is scheduled for completion by last quarter of 2005. IPA is a 100% import substitute product.

The company's new venture into services arena with a Global Specialty Mall christened as "Urban Spaces" in Pune is progressing as per schedule.

Click here to view the latest quarterly result.

For further information contact:
Vivek Y. Kelkar
Vice President - Communication
Tel: 91-20-2668 4155
Fax: 91-20-2668 5994
E-mail: vykelkar@deepakfertilisers.com