- Deepak Fert & Petrochemicals has announced Q3 results and the company's Net Profit was Rs 53Crore Vs Rs 22Crore, growth of nearly 141%.
- Sales were flat at Rs 362Cr Vs Rs 363Cr in same period last year.
- Poor monsoons may have kept the sales growth flat, but profit growth was strong which must have been on the back of various cost-cutting measures taken up by India Inc after slowdown and many fertilizer units benefitted after RELIANCE D6 gas was supplied to them on priority basis.
- The industry continues to remain under pressure under the controlled regime; there is considerable inflexibility in pricing and production. However latest measure to impose import parity pricing on excess production is expected to augur well for the fertilizer industry.
- The measure to pay-off the subsidy in cash instead of bonds and also to reimburse the losses incurred on sale of these bonds at discount will enable the industry to avoid unnecessary losses.Any change in Fertilizer policy towards nutrient-based subsidy would be a positive trigger for the stocks as the industry is looking up after many years of downturn.
See original post on DEEPAK FERT - http://tanmaygopal.blogspot.com/2010/01/deepak-fertilizers-and-petrochemicals.html