India's Deepak Fertilisers And Petrochemicals's Q4 profit falls on weak demand

SRF

29/05/2024 10:59

BENGALURU, May 29 (Reuters) - Indian agricultural chemicals firm Deepak Fertilisers and Petrochemicals  DPFE.NS  posted
nearly a 16% fall in profit on Wednesday, dragged by muted performance in its mainstay chemicals segment.
    Net profit fell to 2.15 billion rupees ($25.81 million) during the three months ended March 31 from 2.55 billion rupees a year
earlier. Revenue from operations fell about 25.4% to 20.86 billion rupees, marking the company's fourth consecutive quarter of
decline.
    The company's chemicals segment which deals in products catering to sectors such as pharmaceuticals, agrochemicals, drugs and
dye intermediates, among others, clocked a 9.4% drop in revenue.
    For further results highlights, (click here)
    
KEY CONTEXT
    Factors such as excessive inventory in the domestic market, water scarcity in southern India and unfavourable subsidies hit the
performance of agrochemical and fertiliser companies in the fourth quarter.
    Analysts, however, expect above-average monsoon rainfall and more subsidies for chemicals during the financial year 2025 would
help change the fortunes of firms like Deepak Fertilisers and Petrochemicals.
    Peers Coromandel International  CORF.NS  and SRF  SRFL.NS  also posted a decline in their quarterly earnings.

 PEER COMPARISON 
                            Valuation (next 12 months)    Estimates (next 12    Analysts' sentiment                   
                                                               months)                                                
                 RIC        PE           EV/EBITDA      Revenue      profit     Mean         # of       Stock to      Div yield (%)
                                                        growth%      growth%    rating*      analysts   price         
                                                                                                        target**      
 Deepak           DPFE.NS          9.54           6.10     16.50       NULL     BUY                  1      0.83               1.80
 Fertilisers                                                                                                          
 and                                                                                                                  
 Petrochemicals                                                                                                       
 Corp Ltd                                                                                                             
 Coromandel       CORF.NS         18.92          12.15     6.70        14.92    BUY                  9      0.98               0.96
 International                                                                                                        
 Ltd                                                                                                                  
 SRF Ltd          SRFL.NS         38.05          21.29     15.03       27.09    HOLD                25      0.98               0.31
 Sumitomo         SUMH.NS         46.37          32.90     19.66       43.24    BUY                  8      1.03               0.27
 Chemical 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

    JANUARY-MARCH STOCK PERFORMANCE
    
    
-- All data from LSEG
-- $1 = 83.1020 Indian rupees


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
DPFE JAN-MARCH STOCK PERF    https://tmsnrt.rs/3KgVoCn
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sohini Goswami)
 ((Yagnoseni.Das@thomsonreuters.com;))