Deepak Fertilizers & Petrochemicals Corp Ltd
DEEP

Deepak Fertilizers & Petrochemicals Corp Ltd (DEEPAKFERT)

₹639.752.25%

Key Stats

₹630
Day's Price Range
₹653.7
₹284
52-Week Price Range
₹724.8
1 Month Return-5.2 %
3 Month Return16.06 %
1 Year Return115.59 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 29
13.26
EPS
Rank 18
₹47.18
BVPS
Rank 13
₹260.49
Dividend Yield
Rank 9
3.31%
ROE
Rank 82
11.45%
Price To Book Ratio
Rank 42
2.4
Debt To Asset
Rank 19
0.64

Company Information

Deepak Fertilisers and Petrochemicals Corporation Ltd DFPCL is the leading manufacturer of industrial chemicals in India. It is one of the major manufacturers of Nitric Acid Iso Propyl Alcohol IPA Food Grade Liquid Carbon Dioxide and Methanol. The manufacturing facilities of the Company are located at Taloja Maharashtra and Dahej Gujarat. The Company imports and supplies very few selected solvents to maintain its leadership position domestically. The Company is engaged in the business of fertilisers agri services bulk chemicals mining chemicals and value added real estate. It has a strong distribution network of 50 channel partners and direct relationships with 600 industrial customers in India and globally.The company owns Indias most significant Technical Ammonium Nitrate TAN complex which produces Ammonium Nitrate AN Melt Highdensity AN and Lowdensity AN. DFPCL is Indias largest TAN Solids manufacturer and is also one of the worlds top 5 largest merchant TAN manufacturers. It enjoys a 45 market share in the segment with about 85 plus capacity utilisation. The company accounts for 45 of the domestic market and 2.5 of the global production of TAN.DFPCL is one of the largest producers and importers of industrial chemicals in India with Nitric Acid and Solvents being its key flagship products. Currently the Company remains the only manufacturer of Iso Propyl Alcohol IPA in India enjoying a significant leadership position with 85 market share. DFPCL is the largest manufacturer of Nitric Acid in Asia having the largest integrated nitric acid plant with a manufacturing capacity of around 700000 MT of Diluted Nitric Acid DNA and 138600 MT of Concentrated Nitric Acid CNA. In its trading business the company imports solvents such as Acetone Toluene IPA Methanol Hexane Mixed Xylene and Phenol to cater the needs of pharmaceuticals inks and coatings paints pesticides and the agrochemical industries. The company is the key partner of solvent producers in South East Asia Middle East Europe and China for the import of these solvents in India. The ValueAdded Real Estate business of the company comprises of a lifestyle retail centre Creaticity previously Ishanya in Pune with around 400000 sq. ft. of retail space. Creaticity has been focused on a threepronged category strategy comprising of Home and Living FB and Entertainment.Deepak Fertilisers and Petrochemicals Ltd was incorporated in the year May 31 1979 as a private limited company and in the year 1982 they became a public company. In the year 1983 the company in technical collaboration with Fish International Engineers of USA started commercial production of ammonia using natural gas as feedstock. The International Finance Corporation initially supported this venture in the form of equity participation.The company undertook major expansion and diversification in 1989 to achieve forward integration of ammonia and diversification in Methanol. In July 1992 the company commenced commercial production of Low Density Ammonium Nitrate Nitro Phosphate Dilute Nitric Acid and Concentrated Nitric Acid. Later they diversified into specialty retailing with Ishanya Indias largest Design Centre and Specialty Mall for interiors and exteriors. During the year 200102 the company in technical collaboration with Grande Praoisse of France expanded the capacity of Nitro Phosphate fertilizer plant to 300000 tpa and Low Density Ammonium Nitrate plant to 100000 tpa. During the year 200304 the company acquired equity shares of Smartchem Technologies Ltd and thus STL became the subsidiary of the company.During the year 200405 the company has incorporated a wholly owned subsidiary namely Deepak Nitrochem Pty Ltd in Australia to explore investment opportunities triggered by the growth in mining operations. The company commissioned the Automatic Bagging Plant in NP and Ammonium Nitrate. Also they installed and commissioned the 9MW captive cogenerative plant during the year. During the year 200405 the company increased the installed capacity of Concentrated Nitric Acid by 23100 MT and with this expansion the total installed capacity increased to 79200 MT. In August 2006 the company commissioned their IPS plant and in March 2007 the company received the ISO 90012000 certification for the manufacture and supply of Methanol and Iso Propyl.In February 2008 the company and Yara International ASA signed a Heads of Agreement with the intention of establishing a joint venture company to produce and market ammonium nitrate and speciality fertilisers in India. ISHANYA Indias largest Design Centre and Specialty Mall for interiors and exteriors open its first 25 outlets with over 5000 brands.The company has decided to set up another 450 TPD Dilute Nitric Acid plant at Taloha. It is expected that the plant will be commissioned during the first quarter of FY10. Also the company has undertaken a project to build an Ammonia storage facility at the JNPT port to facilitate imports.The company is expanding their diluted nitric acid capacity to 1350 MT/day from 900 MT/day by June 2009 with a total investment of Rs. 110 crore. Also the company plans to foray into contract mining operations as part of a strategic growth initiative. They are looking to enter into third party open cash mining of coal limestone and other minerals which has massive growth potential.During 200910 DFPCLs agribusiness continued its focus on integrated nutrient management and providing crop specific soil specific advisory services to the farmers through its Saarrthie Centres to build brand loyalty enhance produce quality and farm productivity. The company also expanded its geographical footprint by moving into states like Punjab Haryana in addition to the traditional markets of Maharashtra Gujarat Karnataka and Goa.During the year DFPCL recorded the highest production and sale of Iso Propyl Alcohol IPA with the increased availability of propylene. The company recorded the highest production of all Nitric Acid put together including the highest production of 87596 MT of Concentrated Nitric Acid CAN in 200910 surpassing the earlier high of 84971 MT in the previous financial year. PostDiwali 2009 a positive rebound has begun and consumer spending at DFPCLs mall Ishanya is on the increase.During the year the company borrowed longterm funds of Rs. 241 crores for part financing project costs. In addition there were shortterm borrowings of Rs. 122.16 crores.During the financial year ended 31 March 2014 for the first time in the history of the company DFPCLs fertilisers sales crossed Rs. 1000 Crore growing to Rs. 1410 Crore from Rs. 995 Crore in the preceding year. While home and interiors will remain the prime focus DFPCLs mall Ishanya during the year the company recalibrated its business strategy to attract more retailers and shoppers by inviting brands from an equally exciting and growing category of Food and Beverages FB linked with Entertainment. An area of around 40000 sq. ft. has been allocated to FB and the company is in active stage of progress to launch this category. During the financial year ended 31 March 2014 DFPCL acquired 49993 Equity Shares i.e. 99.99 and has also acquired beneficial interest of remaining 7 Equity Shares i.e. 0.01 of SCM Soilfert Limited. Therefore SCM Soilfert Limited became wholly owned subsidiary of the company.During the year under review DFPCLs wholly owned subsidiary SCM Soilfert Limited SSL acquired 28991150 Equity Shares i.e. 24.46 of Mangalore Chemicals Fertilizers Limited MCFL. Further on 23 April 2014 SSL acquired 1001309 Equity Shares i.e. 0.8 of MCFL and made an Open Offer for acquiring 30813939 Equity Shares i.e. 26 to the public shareholders of MCFL at a price of Rs. 63 per Equity Share pursuant to the provisions of Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations 2011 and subsequent amendments thereto. DFPCL is person acting in concert PAC in the Open Offer. DFPCLs operations were adversely affected during the financial year ended 31 March 2015 in view of the stoppage of supply of domestic gas pursuant to an order by Ministry of Petroleum Natural Gas MoPNG w.e.f. 15 May 2014. The company has since challenged the order of MoPNG in the High Court of Delhi. All proceedings in the High Court of Delhi have been completed and the final order is awaited. As a result of stoppage of supply of domestic natural gas the companys Nitrophosphate plant at Taloja has been closed since 15 May 2014.The companys Crop Nutrition business extended its reach to new markets Tamil Nadu Andhra Pradesh in South India during FY201415. The companys Farm Produce business broke even during FY 201415 steered by a more robust business model and greater access to new markets.As part of its forward integrated linkages DFPCL is operating 12 Saarrthie Centres located across its core command area since 2006. With strong linkages between nutrient management and product output management these centres continued to boost lastmile connectivity for farmers during the year under review through advisory and other services.The Ammonium Nitrate Rules introduced by the Government of India relate to logistics management post production and the import of Ammonium Nitrate. The Rules implemented from 11 January 2014 are aimed at regulating storage handling transportation and possession for sale or use of Technical Ammonium Nitrate TAN. DFPCL has completed the process of adoption of these stringent Rules during the year and now fully complies with them.Despite pricing being a challenge DFPCL achieved recordbreaking production and sales of Iso Propyl Alcohol in the three consecutive months of the last quarter of FY 201415. Breaking its all time records in terms of production for three consecutive months from January to March 2015 DFPCL reported its highest ever production numbers Concentrated Nitric Acid.With regard to ValueAdded Real Estate business DFPCL Ishanya mall in Pune helped enhance retailer sales by creating special schemes leading to greater visibility for Ishanya in the core category of home decor and interiors. The mall embarked on a smart strategy of building experiential spaces and allocated 30 of space to food beverage FB and entertainment. This strategy was kickstarted during FY 201314 with Blue Frog Live Music Performance club with FB which became operational during FY 201415 will further augment the topline growth. The division also expanded the FB business by signing on Pub Town Punes pioneering concept for onestop fine dining spread over 30000 sq. ft. phase 1 of 7000 sq. ft. has become operational since early February 2015.During the financial year ended 31 March 2015 DFPCL acquired 49993 Equity Shares i.e. 99.99 and has also acquired beneficial interest of remaining 7 equity shares i.e. 0.01 of SCM Fertichem Limited. Thereby SCM Fertichem Limited became wholly owned subsidiary of DFPCL. Further DFPCLs wholly owned subsidiary Smartchem Technologies Ltd. STL as part of its forward integration initiative announced the launch of its overseas JV during the year for blasting services in Australia. STL has set up Platinum Blasting Services Pty Ltd a JV with local Australian partners having vast experience in providing valueadded blasting services and operational expertise to mining and explosives industries in Australia.During the year under review DFPCLs wholly owned subsidiary SCM Soilfert Limited SSL acquired 7044397 5.94 equity shares of Mangalore Chemicals Fertilisers Limited MCFL at a price of Rs. 93.60 per share plus interest through an open offer made by SSL in October 2014 in which DFPCL was person acting in concertPAC. Subsequent to the open offer the shareholding of SSL reached 31.25 represented by 37036856 equity shares of MCFL. Thereafter SSL sold 29411831 24.82 equity shares of MCFL in the open market through Stock Exchanges. In April/May 2015 Zuari Fertilisers and Chemicals Limited made an open offer to the shareholders of MCFL to acquire upto 36 shares of MCFL equity share capital Rs. 91.92 per share plus interest. In response SSL sold 6184928 5.22 equity shares of MFCL in the aforesaid open offer. SSL continues to hold balance 1.21 equity shares of MCFL. DFPCL received an interim dividend of Rs. 705.54 Lacs from SSL during the year under review in view of the financial gain SSL received on account of the aforesaid transaction in MCFL shares.During the financial year ended 31 March 2016 FY 2016 DFPCL attained a new benchmark in terms of Net Sales which was highest ever. The total Net Sales for the year FY16 stood at Rs 4258.72 crore up by 14.74 from Rs. 3711.76 crore in FY 2015.Based on the request from the farming community and directive of Government of Maharashtra DFPCL restarted the manufacturing of ANP fertiliser during first quarter of FY 2016 based on RLNG. The plant had remained shut since 15 May 2014 due to stoppage of Natural Gas a key raw material supply pursuant to an arbitrary and discriminatory order of the Ministry of Petroleum Government of India. During this period to complete the basket of products required by farmers the company continued with trading of fertilisers from overseas as well as domestic producers suppliers.Platinum Blasting Services Pty. Ltd. a joint venture in Australia and subsidiary DFPCL wholly owned subsidiary Smartchem Technologies Limited STL successfully completed its 1st year of operation. During the year it bagged 3 blasting services contracts to provide value added blasting to the mining industry in Australia.During the financial year ended 31 March 2016 Platinum Blasting Services Pty Ltd. PBS subsidiary of Smartchem Technologies Limited has acquired ownership interest in Australian Mining Explosives Pty. Ltd. AME for a consideration of AUS 3.7 Million. Due to the aforesaid acquisition by PBS AME has become subsidiary of DFPCL pursuant to the provisions of the Companies Act 2013.During the year ended 31 March 2016 DFPCL registered its highest ever production and sales of Concentrated Nitric Acid. During the year the company introduced a special grade Nitric Acid for dairy industry. Deepak Fertilisers and Petrochemicals Corporation Limited DFPCL commissioned its brownfield NPK Nitrogen Phosphorous and Potassium granulation plant at Taloja Maharashtra in the fourth quarter of FY 2017 with a capacity of 6 lakh MTPA. This brownfield facility expansion is the first and the only facility in India with a unique fully automated bag loading facility. As there were huge inventories available in the channel and with the expected production of new NPK facility the company restricted volumes of the trading business. To tackle the prevailing challenges in the external environment the company undertook series of measures including the tracking and pushing of inventories through aggressive and structured marketing advertising and promotional activities. The company also undertook regionspecific and cropspecific initiatives on identified regions which had the maximum potential. The company is moving to a more sustainable cropfriendly and productivityenhancing fertiliser products. The companys ongoing product development is also focussed on developing customised cropspecific nutrient solutions. This initiative maps the global bestclass practices and the company is confident that these will revolutionise the way farm inputs are consumed in India. Trial runs for the same have been carried out during FY 2017. In spite of Fertiliser Grade Ammonium Nitrate FGAN imports DFPCL continued to be the market leader with a share of 36 of TAN portfolio in FY 2017. The companys Srikakulam TAN plant which was shut down for a short period due to compressor repairs and maintenance commenced operations from the second quarter of FY 2017. This resulted in better capacity utilisation and improved availability of the product across Eastern India.Platinum Blasting Services Pty. Ltd. PBS a joint venture in Australia and a subsidiary of DFPCLs wholly owned subsidiary STL successfully completed its second year of operation. During the year through its valueadded blasting service offerings to the mining industry in Australia it bagged 3 blasting services contracts and 4 topup services contracts.During FY 2017 the companys Concentrated Nitric Acid CNA sales grew by 10 leading to highest ever sales of the product.In its ValueAdded Real Estate business DFPCLs strategy of crafting a food beverage destination continued through the year with addition of new and exciting dining formats such as Zora Baraza Opus Banquets with nearly 25000 sq. ft. of space being leased out during FY 2017. Sportainment in the form of Punes largest indoor sports arena XLR8 opening during year complemented the FB initiatives. Adjacencies were leased out in the form of design institutes like Srishti School of Design and Fashion and Design institute.The National Company Law Tribunal NCLT vide its Order dated 30 March 2017 has approved the Scheme of Arrangement amongst the company SCM Fertichem Limited SCM Fertichem and Smartchem Technologies Limited Smartchem and their respective shareholders and creditors involving: The slump exchange of a the Technical Ammonium Nitrate TAN undertaking of the company together with its business and operations including its manufacturing and related facilities located at i Taloja Pune Maharashtra ii Jawaharlal Nehru Port Maharashtra and iii Paradeep and its marketing corporate offices TAN Undertaking and b the Fertiliser undertaking of the company together with its business and operations including its manufacturing and related facilities located at i Taloja and Pune Maharashtra ii Jawaharlal Nehru Port Maharashtra and iii Panipat Haryana and its marketing corporate offices Fertiliser Undertaking and collectively a and b are hereinafter referred to as the Transferred Undertakings of the company to SCM Fertichem on a going concern basis Slump Exchange and thereafter the subsequent demerger of the Transferred Undertakings and vesting of the same from SCM Fertichem in Smartchem on a going concern basis in accordance with Section 219AA of the Income Tax Act 1961 Demerger with effect from the Appointed Date 1 January 2015. A certified copy of the Order passed by the NCLT was filed with the Registrar of Companies Pune Maharashtra on 1 May 2017. Thus the Scheme of Arrangement has become effective with effect from 1 May 2017 in terms of the provision of the said Scheme of Arrangement.Further the National Company Law Tribunal vide its Order dated 22 June 2017 has approved the Scheme of Amalgamation providing for amalgamation of SCM Soilfert Limited a Wholly Owned Subsidiary of the company with the company. The Appointed Date for the said Scheme is 1 April 2015. Effective 15 May 2014 domestic gas supply to the company was arbitrarily stopped by the Ministry of Petroleum and Natural Gas. The company successfully challenged the same before the Delhi High Court which by its Orders dated 7 July 2015 and 19 October 2015 directed the Government of India GoI to restore the supply of gas. Review petition filed by the GoI challenging the said Orders was rejected by the Court. Further the GoI also filed the Special Leave Petition SLP before the Supreme Court of India against the Order of the Delhi High Court which was disposed of during the year under review without granting any relief to the GoI. The GoI has filed an affidavit before the Delhi High Court stating that Inter Ministerial Committee IMC has decided to recommend supply of pooled gas to the company subject to approval of the Competent Authority.FY 2018 witnessed Deepak Fertilisers and Petrochemicals continued journey into Specialty Fertilisers Micro Nutrients and WaterSoluble Fertilisers. In January 2018 Deepak Fertilisers and Petrochemicals introduced a fertiliser under the brand name Mahadhan Smartek which is the firstofitskind product in India. Smartek is a specialised technology for NPK that involves a unique coating which enhances nutrient uptake and profusely helps the root system thereby increasing yield significantly. It also helps in releasing the phosphorus fixed in the soil reduces nitrogen volatisation leading to increased fertiliser availability to the crop. During the 4th quarter of FY 2018 STL initiated 5000plus field demos in the states of Maharashtra Gujarat and Karnataka for groundnut sugarcane tomato onion banana and solanaceous vegetable crops. The company has set up a 32000 MT greenfield plant for Bentonite Sulphur and commissioned in Q1 FY 2018. Strategically located at Panipat Haryana this plant will serve the markets of Madhya Pradesh Haryana Uttar Pradesh and Punjab which are essentially Sulphur deficient regions. Besides it will enable the company to save on logistics costs boost functional efficiencies enhance its competitiveness and cater to newer markets especially Northern India where it had marginal presence.The Department of Fertilisers DoF Ministry of Chemicals and Fertilisers had withheld subsidy due to the company in accordance with applicable Nutrient Based Subsidy NBS Scheme of the Government of India GoI alleging undue gain arising to the company on account of supply of cheap domestic gas. The company had filed a Writ Petition in the High Court of Judicature at Bombay challenging the withholding of subsidy. Based on the directive of the High Court the GoI released the subsidy amounting to Rs 463 Crore and subsidy amounting to Rs 310 Crore was withheld pending final decision. On the request of the company the DoF has released subsidy amounting to Rs 310 Crore against a Bank Guarantee pending final decision.The companys Technical Ammonium Nitrate TAN manufacturing plant at Srikakulam which was shut down due to repairs and maintenance commenced operations and delivered about 50 of the capacity. This resulted in the overall better capacity utilisation for TAN Business and improved availability of the product across India. The company utilised the services of international experts to develop the valueadded products understand market vis vis value proposition gaps and facilitate market penetration and actions with the right Capex and Opex. For establishing global footprint and enhancement of export revenue the company augmented and strengthened its presence in the key markets of Africa and Asia through better services. In the domestic market the companys focus has been on expanding the target geographies to reach the endusers through a solid distribution network through the addition of new zones in Raipur Tata Nagar and NCR in FY 2018 followed by NorthEast Salem and Rajkot in FY 2019. Platinum Blasting Services Pty. Ltd. PBS a joint venture in Australia and STL successfully completed its 4th year of operations. During the year through its valueadded blasting service offerings to the mining industry in Australia it bagged 3 blasting services contracts and 4 topup services contracts.In FY 2018 Deepak Fertilisers and PetrochemicalsIndustrial Chemicals segment witnessed record volumes in Nitric Acid with full capacity utilisation in Concentrated Nitric Acid CAN. During the year the company dynamically migrated its product mix towards Concentrated Nitric Acid in line with the growth in major application such as the nitroaromatics industry. In Iso Propyl Alcohol IPA the company maintained its market share in manufacturing and trading becoming the key supplier to customers in various segments such as Pharma inks and coatings and other derivatives. In FY 2018 Deepak Fertilisers and Petrochemicals trading business touched Rs 2000 crore growing by 80 over FY 2017. The company imported over 4 lakh MT of various solvents in FY 2018 growing 73 over FY 2017. In its trading business the company imports solvents such as Acetone Toluene IPA Methanol Hexane Mixed Xylene and Phenol to cater the needs of pharmaceuticals inks and coatings paints pesticides and the agrochemical industries. The company is the key partner of solvent producers in South East Asia Middle East Europe and China for the import of these solvents in India.In FY 2018 Creaticity has actively embarked on an exciting transformation into a vibrant and creative living campus that offers inspiring experiences to its customers across the three categories of Home Living Food Beverage and Entertainment. Creaticity previously Ishanya is the ValueAdded Real Estate business of the company comprising of a lifestyle retail centre in Pune with around 400000 sq. ft. of retail space. This journey of transformation includes smart reconfiguration of the mall spaces innovative deployment of technology and service design ideas aimed at better navigation and circulation of the customers across the campus thereby enabling more productive and satisfied customers.The Board at its meeting held on 22nd April 2019 granted an inprinciple approval for issuing FCCBs aggregating upto USD 30000000 in two tranches to International Finance Corporation IFC. The Board also granted an inprinciple approval for issue of Compulsory Convertible Debentures CCDs by Smartchem Technologies Limited a wholly owned subsidiary of Company aggregating upto Rs. 210 Crore in two tranches to IFC. During the year under review pursuant to the approval of shareholders the Company had allotted 6476893 warrants of face value of Rs. 10/ each at a premium of Rs. 298.79 per warrant aggregating to approximately Rs. 200 Crore convertible into 6476893 equity shares of face value of Rs. 10/ each at a premium of Rs. 298.79 per equity share aggregating to approximately Rs. 200 Crore to Robust Marketing Services Private Limited RMSPL a promoter group company and RMSPL paid Rs. 50 Crore an amount equivalent to 25 of the warrants issue size pursuant to the applicable provisions of SEBI Issue of Capital and Disclosure Requirements Regulations. The Company has utilised the above funds wherein the shareholders had approved the raising of funds.
OrganisationDeepak Fertilizers & Petrochemicals Corp Ltd
HeadquartersPune
IndustryChemicals