India's Deepak Fertilisers posts Q1 profit surge on lower costs

Deepak Fertilisers and Petrochemicals

31/07/2024 10:23

BENGALURU, July 31 (Reuters) - India's Deepak Fertilisers and Petrochemicals  DPFE.NS 
reported a 77.7% rise in profit on Wednesday, helped by a decline in the cost of materials
consumed.
    Net profit rose to 1.96 billion rupees ($23.4 million) during the three months ended June 30
from 1.1 billion rupees a year earlier.
    Revenue from operations fell 1.4% to 22.81 billion rupees, marking the company's fifth
consecutive quarter of decline, weighed by sluggish performance in the mainstay fertiliser segment.
Meanwhile, total expenses slipped 6.8% to 20.23 billion rupees.
    For further results highlights,  urn:newsml:reuters.com:*:nFWN3JN01W

    KEY CONTEXT
  
        Higher agrochemical inventories continue to weigh on the sector, brokerage Centrum said in
a pre-earning note. Supplies from China are also expected to hurt the sector's performance, even as
demand is likely to pick up on expectations of normal monsoon ahead of the kharif crop season, the
brokerage added. 
    
    
    PEER COMPARISON
  

                                 Valuation     Estimates (next   Analysts' sentiment          
                                  (next 12        12 months)                                  
                                  months)                                                     
                    RIC        PE      EV/EBI  Revenue  Profit   Mean     No of     Stock to  Div
                                       TDA     growth   growth   rating*  analysts  price     yield
                                               (%)      (%)                         target**  (%)
 Deepak              DPFE.NS    15.61    9.02   13.84    40.79   Buy             1    1.41     0.92
 Fertilisers and                                                                              
 Petrochemicals                                                                               
 Corp Ltd                                                                                     
 Coromandel          CORF.NS    25.15   16.61   5.13     14.40   Buy             9    1.23     0.36
 International Ltd                                                                            
 SRF Ltd             SRFL.NS    41.94   23.23   14.78    21.82   Hold           25    1.08     0.29
 Sumitomo Chemical   SUMH.NS    47.03   36.69   18.21    34.27   Buy             7    1.04     0.17
 India Ltd                                                                                    
    

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT            
    
    APRIL-JUNE STOCK PERFORMANCE
  


-- All data from LSEG IBES
-- $1 = 83.7300 Indian rupees    


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Deepak Fertiliser June Qtr 2024 vs Peers    https://tmsnrt.rs/4frZGox
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Eileen Soreng)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))