The Contingent liability seems to be on a higher side on a consolidated basis.Your view on this
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Mainly IT/GST demands which seemed usual from Fy23 too.
Capital commitments related to projects also seem fine to me. Infact, commitments to supplier seems to have dropped which is good sign.
1 Like
Keynote has given Target of 2132 for Deepak Fertilizers, +98% Upside
Keynote_initiating_coverage_on_Deepak_Fertilisers_and_Petrochemicals.pdf (1.7 MB)
"The company is well-positioned to drive growth in both revenue and profitability. Additionally, it will capitalize on increased capacity utilization, supported by favorable macroeconomic conditions. Strong demand, bolstered by the absence of import dumping and a growing GDP, coupled with positive monsoon forecasts, will further enhance the company’s prospects.
The global ammonia and nitric acid market is currently facing significant changes due to several key factors. Strict environmental regulations and high compliance costs are leading to the closure of ammonia production facilities across Europe, reducing regional supply. At the same time, natural gas prices are rising because of higher domestic demand and LNG exports, which is driving up production costs for ammonia producers, especially in Europe.
As a result of these developments, global prices for both ammonia and nitric acid are expected to rise, benefiting producers in regions with lower raw material costs, such as India. However, industries that rely on these chemicals, such as fertilizer and explosives manufacturers, may need help with these increased costs.
disc- invested, not buy/sell reco
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Recent CRISIL rating A1 stable Rating Rationale
Highlights:
- Over the medium term, the operating margin should sustain at 18-20%, higher than the historical long-term average, aided by benefits from backward integration in ammonia
- DFPCL will also benefit from the lower-priced natural gas, as per its long-term contract with Equinor, priced favourably than its existing contracts
- Going forward, the group will raise additional debt to fund its capacity expansion in TAN and nitric acid, with an estimated capital expenditure (capex) of ~Rs 4,500 crore over next 2-3 fiscals
Disclaimer: Holding it in my portfolio
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Q2 Fy25 Results
great set of no.s (driven by fertilizers, crop nutrition segment)
YoY revenue - 2,747cr Vs 2,424 cr 
13%
YoY PBT - 298 cr Vs 116 cr 156%
YoY PAT - 214 cr Vs 63 cr 237%
YoY EPS - 16.64 vs 4.76 249.58%
QoQ revenue - 2,747 cr Vs 2,281 cr 20%
QoQ PBT - 298 cr Vs 269 cr 10.7%
QoQ PAT - 214 cr Vs 200 cr 7%
QoQ EPS - 16.64 vs 15.49 7.42%
• Debt Reduction: Prepaid ₹200 crores in debt, improving the Net Debt to EBITDA ratio from 2.66x to 1.64x.
• Change in key RM Prices in Q2FY25: Ammonia ~11% YoY; MOP ▼ ~40% YoY; Gas ~9% YoY
• Mining Chemicals (Technical Ammonium Nitrate):
• In Q2 FY25, premium product LDAN’s sales volume soared by 16% YoY and rose by an impressive 20% in H1 FY25 compared to H1 FY24
• Business Outlook: The mining and infrastructure is expected to pick up post monsoon as demand for Power (Coal), Cement & Steel is expected to increase thereby providing robust support for TAN demand.
Disc invested
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