India’s Deepak Q1 net profit jumps 34% on strong sales

23 July 2010 02:58  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Deepak Fertilizers and Petrochemicals Corp (DFPCL) said late on Thursday its first-quarter net profit grew 34% year on year to rupees (Rs) 522m ($11m) due to strong sales and higher operating efficiencies.

Income from operations in the three months to June jumped 45% to Rs3.50bn, the company said in a filing to the Bombay Stock Exchange.

Sales in the chemicals business were up 32% year on year to Rs2.31bn, it said.

“With ample natural gas and other raw material availability, capacity utilisations are now getting maximized as we go forward. We expect the price scenario to remain fairly stable in the near-to-medium term,” said Sailesh Mehta, managing director at DFPCL, in a statement.

Deepak also stated that it was on schedule to start up its new 300,000 tonne/year technical ammonium nitrate (TAN) project at Taloja, Maharshtra state by September or October.

Looking ahead, plentiful supply natural gas and refinery grade propylene would help the company maximise capacity utilisation of its gas-based plants, it added.

($1 = Rs46.94)

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By: Priya Jestin

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