Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Thursday (January 29) reported a 43.6% year-on-year decline in net profit to ₹141.5 crore, compared with ₹251 crore in the corresponding period last year.Revenue for the quarter rose 9.7% year-on-year to ₹2,830 crore from ₹2,579 crore in the same period a year ago, indicating growth in topline despite pressure on earnings.
EBITDA for the quarter declined 27.4% year-on-year to ₹353 crore, compared with ₹486 crore reported in the year-ago period. EBITDA margin declined to 12.5% from 18.9% in the corresponding quarter last year.
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Further, the company said its board of directors approved the permanent closure and dismantling of the company’s 300 tonnes-per-day methanol plant located at the K1 unit. The plant has not been operational since August 2021.The company said the methanol plant was set up in 1991 and, after delivering returns and paybacks over its operating life, has outlived its utility in terms of current economic size and efficiency requirements.
EBITDA for the quarter declined 27.4% year-on-year to ₹353 crore, compared with ₹486 crore reported in the year-ago period. EBITDA margin declined to 12.5% from 18.9% in the corresponding quarter last year.
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Further, the company said its board of directors approved the permanent closure and dismantling of the company’s 300 tonnes-per-day methanol plant located at the K1 unit. The plant has not been operational since August 2021.The company said the methanol plant was set up in 1991 and, after delivering returns and paybacks over its operating life, has outlived its utility in terms of current economic size and efficiency requirements.
The dismantling of the plant will free up land to accommodate alternative project ideas that could be undertaken to derive brownfield growth advantages. The move is also expected to contribute positively to environmental sustainability.
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In addition, the closure will lead to the elimination of potential emission sources, a reduction in energy and water consumption associated with outdated production routes, and support the company’s transition toward cleaner and more sustainable manufacturing practices.
Shares of Deepak Fertilisers & Petrochemicals Corporation Ltd ended at ₹1,086.00, down by ₹86.00, or 7.34%, on the BSE.
