The Hindu Business Line : Deepak Fert net up, sales down

THE Pune-based Deepak Fertilisers and Petrochemicals Ltd has recorded a total revenue of Rs 496.30 crore for the fiscal ended March 2004 against Rs 545.9 crore recorded in March 2003.

According to the official communication, profit before tax has also decreased from Rs 99.48 crore for March 2003 to Rs 97.41 crore for March 2004. However, net profit has shown an increase of 8.75 per cent to Rs 69.72 crore (Rs 64.11 crore).

Keeping in view the various projects on hand, the board of directors has decided to maintain the dividend rate at 22 per cent. According to Mr Sailesh C. Mehta, Managing Director, Deepak Fertilisers, non-regulated products would drive future growth strategy.

He said the isopropyl alcohol (IPA) project was progressing as per the schedule and the captive power plant is expected to be commissioned by September 2004, helping in substantial reduction in energy costs in the current year. The capital outlay for the captive power plant is Rs 48 crore.

He said the chemical business of the company had contributed about 60 per cent of the total turnover. The company had announced plans to manufacture IPA earlier this year. The plant of 70,000 tonnes per annum capacity is being set up at the company's existing manufacturing facility at Taloja. The total capital outlay for this project is estimated to be Rs 204 crore.

The project is scheduled for completion by last quarter of 2005. IPA is a 100-per cent import substitute product.

He said the company had suffered a 15-per cent reduction in key raw material — natural gas supply during 2003-04. He said this perennial gas shortage problem would reduce substantially by the middle of next year when the LNG pipeline from Dahej reached Taloja and would further improve with the Krishna Godavari basin gas reaching the West Coast.