Chemical Segment Spurs Q3 Net By 45%

Profit After Tax (PAT) for the third quarter of the current year, riding on the chemical segment, has spurted by 45% as compared to the corresponding period of the previous year. While dip in fertiliser business brought the net sales figure lower at Rs.117.67 crores as against Rs.121.30 crores for the corresponding quarter of previous year, the PAT has jumped to Rs.22.84 crores as compared to Rs.15.72 crores for the corresponding quarter of previous year.

For the nine months ended 31^st December 2004, DFPCL has posted net sales of Rs.333.43 cores as against Rs.336.95 crores for the corresponding period of the previous year. The PAT has increased to Rs. 52.06 crores as compared to Rs.40.02 crores - an increase of 30%. The chemical business in the total turnover grew by 20% in comparison to the last nine months and now contributes to over 70% of the Company's turnover. The financial ratios have correspondingly strengthened during the current year.

The production of fertiliser was affected due to reduction in supply of key raw material - natural gas, in comparison to the contracted quantity as also uneconomical cost of ammonia. It is expected that large gas finds in KG basin and LNG imports will improve availability of gas in future to enable the plant operations at optimum capacity levels.

Work is fast progressing on setting up of 70,000 MTPA of Isopropyl Alcohol (IPA) plant which is due for commissioning by December 2005. The Company has entered into a long term agreement with M/s. BPCL for supply of propylene, key raw material for IPA.

The Company's project to build a global speciality mall, Ishanya, has received very positive response from the industry. This will mark the Company's entry into the service sector. The mall will have over a five lakh sq. ft. built-up area spread over ten acres and will offer to the Indian consumers for the first time end-to-end products and services to the exterior and interior needs of residential buildings, commercial offices, software parks, hotels, restaurants, retail shops, etc. The Mall with a capital outlay of around Rs.100 crores is expected to be ready by December 2005.

With the implementation of the above projects, DFPCL is poised for substantial growth in the next two years.

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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