Deepak Fertilisers

Pune, Jan 30 (UNI) Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) today announced growth of 70 per cent in net sales registering growth in net profit by 56 per cent over the corresponding quarter in the previous financial year for Q3 2006-07.

Net Sales improved by 70 per cent to Rs 243.29 crores in Q3 2006-07, against Rs 143.40 crores in Q3 2005-06 while Profit After Tax (PAT) for the third quarter of the current year has gone up to Rs 24.74 crores (against Rs 15.82 crores in the previous corresponding quarter for 2005-06), a rise of 56 per cent.

The Company's Chemicals business grew to Rs 165.78 crores in Q3 2006-07 against Rs 101.49 crores in Q3 2005-06. Operating Profits for the Chemicals business as a whole grew by 49 per cent for the period under review, compared to the previous comparable period in 2005-06. The Fertilisers business grew to Rs 84.54 crores in Q3 2006-07 from Rs 50.47 crores in Q3 2005-06.

DFPCL's newly commissioned Iso Propyl Alcohol business registered sales of Rs 14.90 crores for the Quarter under review (Rs 23.34 crores for the nine months ended December 31,2006).

Sales were largely constrained by the temporary stoppage of supply of refinery grade propylene (the raw material for this product) from the supplier during October, owing to a fire at the supplier's plant. After normal commencement of supply, the plant has resumed production from November 25th, 2006.

The Company's operating costs were in line with expectations for this Quarter. Naphtha prices stood at an average of Rs 27,500 per MTPA for the nine months ended December 31, 2006. This cost represented an increase of 72 per cent over the previous comparable Quarter in 2005-06, and impacted the company's margins.

Naphtha is used to generate steam for use in the process of manufacturing the company's chemical products. However, with crude prices now softening, the company expects naphtha prices to soften as well, over the coming months, a company press note stated.

UNI