India's Deepak Fertilisers says Q4 profit fell 9% on inventory costs

Deepak Fertilisers and Petrochemicals

17/05/2023 11:20

BENGALURU, May 17 (Reuters) - India's Deepak Fertilisers and Petrochemicals Corp
 DPFE.NS  said on Wednesday that fourth-quarter profit fell 8.87%, dragged by higher materials
and inventory expenses.  
    Consolidated net profit was 2.55 billion rupees ($31.2 million) for the three months ended
March 31, compared with 2.80 billion rupees a year ago, the fertilisers and industrial chemicals
maker said in an exchange filing. Total expenses jumped about 53% after inventory and materials
costs rose.
    The company recommended a dividend of 10 rupees per equity share for the financial year
ended March 31.
    For further earnings highlights, click:  urn:newsml:reuters.com:*:nFWN37E0XH
    
    WHY IT MATTERS 
    
    The fertiliser sector was saddled with a surplus in inventory in the March quarter due to
weak demand. 
    On Monday, rival Coromandel International Ltd  CORF.NS  posted a 15% slump in quarterly
profit as higher costs offset growth in demand. Rivals Chambal Fertilisers and Chemicals Ltd
 CHMB.NS  and Gujarat State Fertilizers & Chemicals Ltd  GSFC.NS  are scheduled to report their
results next week. 
     
   
    PEER COMPARISON 
    
    
                         Valuation (next 12   Estimates (next 12   Analysts' sentiment        
                              months)              months)                                    
               RIC      PE       EV/EBITDA   Revenue     profit    Mean     # of     Stock    Div
                                             growth      growth    rating   analyst  to       yield
                                                                            s        price    (%)
                                                                                     target   
 Deepak                                                                                     
 and                                                                                          
 Petrochemica                                                                                 
 ls Corp Ltd                                                                                  
 Chambal                                                         BUY                        
 and                                                                                          
 Chemicals                                                                                    
 Ltd                                                                                          
 Coromandel                                                      BUY                        
 l Ltd                                                                                        
 Rama                                                                                       
 Ltd                                                                                          
 
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and
Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT
    
    JAN-MARCH STOCK PERFORMANCE 
    
    
-- All data from Refinitiv
-- $1 = 81.78 Indian rupees
   

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Deepak Fertilisers shares vs peers    https://tmsnrt.rs/3OegNPx
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 (Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann Thoppil)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607; +91 8095218099;))