DEEPAK Fertilisers and Petrochemicals (DFPCL) has managed to beat expectations during the September 2007 quarter despite the challenging industry outlook. The company faced pressure on its operating margins, but it managed to survive by cutting down on the loss-making fertiliser business. The turnover from fertiliser business — both manufactured as well as traded goods put together — came down by 32% while the losses from the segment fell by 78% to just Rs 1.46 crore.
DFPCL registered a modest 3% topline growth to Rs 224 crore. The 320 bps improvement in operating margins to 186%, coupled with higher other income and a fall in extraordinary expenses, helped the company report a 39% growth in net profit to Rs 22 crore.
The chemicals business grew handsomely, thanks to Isopropyl Alcohol (IPA) and propane business, which it had entered only last year. Although a better performer, the chemicals segment too witnessed pressure with the PBIT margins falling by 710 bps to 24% of net sales. DFPCL has also forayed into specialty retailing by setting up the multispecialty mall named Ishanya. The company has already leased out 80% of the 5.5 lakh sq ft area in this mall. It has also set up eight windmills with 1.25 MW capacity each in Maharashtra. The company has further strengthened its position in chemicals industry by setting up a chemical complex, including nitric acid and ammonium nitrate plants in Paradip in Orissa. The company has been waiting a long time for improved supply of natural gas to its chemicals and fertilisers plant at Taloja from Gail’s gas pipeline connecting Dahej in Gujarat to Dabhol in Maharashtra. However, there have been some delays in establishing lastmile connectivity. The company expects to overcome these problems by the year-end. Gujarat Gas posts robust growth
GUJARAT Gas came out with strong profit growth during September 2007 quarter despite a marginal fall in volumes of natural gas sold. Its performance during the September 2006 quarter was affected due to floods in Surat and fall in transmission income.
The total volume of gas sold during the third quarter declined to 259 mmscm against 264 mmscm in the corresponding period last year. This was due to the gassupply contract with one supplier expiring during the quarter and gas availability from another source facing constraints due to technical issues.
GGL’s topline on a consolidated basis inched up 18% to Rs 276.6 crore, but the operating margins jumped by 640 bps resulting in 62% higher PBDIT.
Gas from the Tapti field expansion project started flowing in September, which is likely to be ramped up to the full contracted volume of 1.65 mmscm per day over the next quarter, would drive company’s growth going forward.
DFPCL registered a modest 3% topline growth to Rs 224 crore. The 320 bps improvement in operating margins to 186%, coupled with higher other income and a fall in extraordinary expenses, helped the company report a 39% growth in net profit to Rs 22 crore.
The chemicals business grew handsomely, thanks to Isopropyl Alcohol (IPA) and propane business, which it had entered only last year. Although a better performer, the chemicals segment too witnessed pressure with the PBIT margins falling by 710 bps to 24% of net sales. DFPCL has also forayed into specialty retailing by setting up the multispecialty mall named Ishanya. The company has already leased out 80% of the 5.5 lakh sq ft area in this mall. It has also set up eight windmills with 1.25 MW capacity each in Maharashtra. The company has further strengthened its position in chemicals industry by setting up a chemical complex, including nitric acid and ammonium nitrate plants in Paradip in Orissa. The company has been waiting a long time for improved supply of natural gas to its chemicals and fertilisers plant at Taloja from Gail’s gas pipeline connecting Dahej in Gujarat to Dabhol in Maharashtra. However, there have been some delays in establishing lastmile connectivity. The company expects to overcome these problems by the year-end. Gujarat Gas posts robust growth
GUJARAT Gas came out with strong profit growth during September 2007 quarter despite a marginal fall in volumes of natural gas sold. Its performance during the September 2006 quarter was affected due to floods in Surat and fall in transmission income.
The total volume of gas sold during the third quarter declined to 259 mmscm against 264 mmscm in the corresponding period last year. This was due to the gassupply contract with one supplier expiring during the quarter and gas availability from another source facing constraints due to technical issues.
GGL’s topline on a consolidated basis inched up 18% to Rs 276.6 crore, but the operating margins jumped by 640 bps resulting in 62% higher PBDIT.
Gas from the Tapti field expansion project started flowing in September, which is likely to be ramped up to the full contracted volume of 1.65 mmscm per day over the next quarter, would drive company’s growth going forward.
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