Deepak Fertilisers and petrochemicals corporation Ltd is among India’s leading producers of fertilisers and industrial chemicals. Set up in 1979 as an ammonia manufacturer, Deepak fertilisers today is a publicly listed, multi product Indian conglomerate with and annual turnover of over one billion USD with a product portfolio spanning industrial chemicals, bulk and specialty fertilisers, farming diagnostics and solutions, technical ammonium nitrate and value added real estate, which includes India’s 1st and largest revolutionary concept retail destination for home interiors and designs. The company has manufacturing facilities in Taloja, Srikakulam, Panipat, Dahej.
BUSINESS VERTICALS:
1)Industrial Chemicals manufacturer:
Deepak Fertilisers is a leading manufacturer of Isopropyl Alcohol, Nitric acid, Methanol and Ammonia. Deepak Fertilisers is the only manufacturer and supplier of Isopropyl Alcohol in India with an installed capacity of 70,000 MTPA. This means company enjoys monopoly in Isopropyl Alcohol. Isopropyl Alcohol is used to manufacture pharmaceuticals, coatings, inks, specialty chemicals and cosmetics. Deepak Ferilisers exports Isopropyl alcohol to USA, EU, Africa, Middle East and Far East. Company has proposed to set up new plant of Isopropyl alcohol with and annual capacity of 1,00,000 MT. Company’s some key customers for Isopropyl alcohol are Dr Reddy’s Laboratories, Aurobindo Pharma, Mylan Laboratories, Hetero Drugs, Divis Laboratories, Asian Paints.
Deepak Ferilisers is the second largest manufacturer of Nitric acid in South East Asia and largest in India. Its market share of Nitric Acid in India is around 60% with an installed capacity of 8,85,000 MTPA. Nitric acid is used to produce many specialty chemicals. It is also used to manufacture ammonium nitrate. Company enjoys monopoly in India for Nitric Acid. Company’s key customer for Nitric acid are Deepak Nitrate, Aarti Industries, Kutch Chemical Industries, Jindal Steel, Ordnance factory, Rudraksh Chemicals.
2) FERTILISERS:
Deepak Fertilisers Mahadhan brand is one stop shop for all types of fertilisers. Company is the only manufacturer of NP Prill 24:24:0 Fertilisers in India. Means company enjoys monopoly in NP fertilisers. Company also produces water soluble fertilisers. It also produces fertilisers for some special crops. Deepak Fertilisers plans to triple its capex for NPK fertilisers. NPK fertilizer segment saw 198% Y-o-Y growth. Company’s customer base is around 2.5 million farmers which gives company 20% market share in fertiliser segment. Company has distribution network of 3,800+ distributors and 20,000+ retailers across 12 states.
3) TECHNICAL AMMONIUM NITRATE:
Deepak Fertilisers enjoys 43% market share in Technical ammonium nitrate in India. Ammonium nitrate is used for explosive in mining sector. Company’s key customers for Technical ammonium nitrate are Coal India, Adani, Tata Steel, Hindustan Zinc, ACC, Ultratech, Ambuja Cement.
4) AMMONIA:
Current Ammonia production capacity of Deepak Fertilisers is 1,28,700 MTPA. Company plans to increase it to 5,00,000 MTPA. This will lead Deepak Fertilisers to zero dependence on imports or domestic third party ammonia suppliers.
5) METHANOL:
Deepak Fertilisers has production capacity of Methanol at 1,00,000 MTPA.
PODUCTION CAPACITIES:
Industrial Chemical:
| Product | Capacity (MTPA) |
| Concentrated Nitric Acid, Installed (Taloja & Dahej) | 2,31,000 |
| Diluted Nitric Acid – Installed (Taloja, Dahej & Srikakulam) | 8,88,960 |
| Iso Propyl Alcohol, Installed (Taloja) | 70,200 |
| Methanol, Installed (Taloja) | 1,00,000 |
| Liquid CO2, Installed (Taloja) | 72,000 |
| TOTAL | 13,62,160 |
Crop Nutrition Business:
| Product | Capacity (MTPA) |
| Nitro Phosphate Fertiliser, Installed (Taloja) | 3,25,000 |
| Nitrogen Phosphorous Potassium Fertiliser, Installed (Taloja) | 6,00,000 |
| Capacity under Debottlenecking (Taloja) | 2,00,000 |
| Bentonite Sulphur, Installed (Taloja & Panipat) | 60,720 |
| TOTAL(Without Debottlenecking) | 9,85,720 |
Company Plans to increase the production capacity of Fertilisers by 2 lakh MTPA.
Technical Ammonium Nitrate:
| Product | Capacity (MTPA) |
| Technical Ammonium Nitrate, Installed (Taloja) | 4,44,000 |
| Technical Ammonium Nitrate, Installed (Srikakulam) | 42,900 |
| TOTAL | 4,86,900 |
| Planned additional capacity (Odisha) | 3,76,000 |
AMMONIA:
| Product | Capacity (MTPA) |
| AMMONIA (Taloja) | 1,28,700 |
| Planned additional capacity (Taloja) | 5,00,000 |
Segmental wise revenue Contribution:
| Segment | Contribution (%) |
| Crop Nutrition Business | 45.4 |
| Industrial Chemical (Including TAN) | 54.4 |
| VARE & Others | 0.2 |
Segment wise Profit Contribution:
| Segment | Contribution (%) |
| Crop Nutrition Business | 20.7 |
| Industrial Chemical (Including TAN) | 78 |
| VARE & Others | 1.3 |
Strengths And Opportunities:
| Strengths | Opportunities |
| • Strong legacy of over four decades backed by robust knowledge and rich extensive experience in manufacturing and financial prudence • Strong management team with in-depth industry experience • Well established and trusted brand among its end users across business segments • Robust dealer network and loyal customer base across market segments in India • Diversified product portfolio, servicing consumers across diversified sectors • Integrated best world-class technologies in processes across business • Location advantage due to proximity to key customers • India’s largest manufacturer of IPA and TAN; only manufacturer of TAN Solids and the 2nd largest Nitric Acid producer in South East Asia • Well established sourcing channels, port and gas pipeline infrastructure for importing raw materials | Growth in the Indian economy presents significant opportunities for DFPCL since it caters to the critical sectors of the country • Transition from commodity to value-added and differentiated products and services • Manufacturing shift of chemical intermediates to India becoming more and more evident with time • Government’s initiatives to improve agricultural productivity by improving soil nutrient balance, encouraging NPK sector • Government’s Aatmanirbhar Bharat and Pharma Vision 2023 to strengthen domestic industries and encourage Made in India • Scaling up exports in TAN • Strengthening of market position via diversification and balanced investments • Backward integration to produce Ammonia in-house • Forward integration to develop a comprehensive product portfolio • Enhanced focus on digital to better connect with end consumers via social media and mobile applications • Growing area under micro irrigation and demand for nutrient based fertilisers |
SECTOR STUDY:
1)Industrial Chemical:
Indian chemicals and petrochemical sector was at $178 billion in 2020 and is expected to reach $304 billon by 2026 growing at a CAGR of 9.3%. with global companies seeking de-risk their supply chains which are dependent on China, the chemical sector in India has the opportunity for a significant growth. An Investment of Rs 8 lakh crore will be required in Indian Chemical and Petrochemicals sector by 2025. This shows Indian Chemicals and Petrochemical sector has huge potential to grow.
Market Size of Indian Chemical Sector (Figures in US$ billion):
| Year | Market Size |
| FY19 | 178 |
| FY20 | 194.6 |
| FY21 | 212.8 |
| FY22 | 232.6 |
| FY23 | 254.3 |
| FY24 | 278.1 |
| FY25 | 304 |
Imports and Exports Of Chemicals in November 2021 (Figures in US$ Million):
| Import | 2,487.1 |
| Export | 2,624.4 |
Global Chemical Market is expected to grow from $3340.32 billion in 2020 to $3728.43 billion in 2021 growing at a CAGR of 11.6%. The global chemical market is expected to reach $4304.71 billion in 2025 growing at a CAGR of 4%.
2) Isopropyl Alcohol:
Isopropyl Alcohol market in India stood at 218.21 thousand tonnes in 2021 and is expected to reach 392.15 thousand tonnes by 2030 growing at a CAGR of 6.73%. Global Isopropyl Alcohol market is expected to grow at 5% CAGR from 2021-2025. Now a days women in Asian countries are spending heaving on beauty products and cosmetics, increasing nuclear family are increasing demand of housing market so demand of paints is also increasing. In pharma Isopropyl alcohol is used in manufacturing of capsule and tablet. Plus India is spending heavily on Pharma. All this will increase the demand of Isopropyl alcohol. Without Isopropyl alcohol paints, pharmaceuticals, cosmetics, personal care products etc are impossible to manufacture.
Indian cosmetic market was valued at $13191.23 million in 2020 and is expected to reach $28985.33 million by 2025 growing at a CAGR of 16.39% by 2026. Indian Pharmaceuticals market will grow to $130 billion by 2030 from $42 billion in 2021. Indian paints and coating sector will grow at a CAGR of 9-10% by 2026. By 2025 the construction industry in India may emerge as the third largest on global levels. So more and more paints will be required. And by seeing the growth of cosmetic, pharma and paint sector the growth of Isopropyl Alcohol will be HUGE. And Deepak Fertilisers enjoys monopoly in Isopropyl alcohol since company is the manufacturer of Isopropyl Alcohol in India.
3) Methanol:
The global methanol market is expected to grow from $28.74 billion in 2021 to $39.18 billion in 2028. Growing at a CAGR of 5%. Indian Methanol market demand stood at 2.26 million tonnes in 2020 and is expected to reach 4.01 million tonnes by 2030 growing at a CAGR of 6.59%. Indian Methanol production is expected to reach 20 mega tonnes by using Indian high ash coal, stranded gas and biomass as per the methanol economy program initiated by Niti Ayog. This is expected to have significant impact on import substitution of crude oil for India, and consequently increase the usage of Methanol. Niti Ayog has also drawn out a plan to replace 20% of crude oil imports by methanol alone, seen to lead a reduction in annual fuel bill of India by 15% till 2030.
Methanol is a clear liquid chemical that is water soluble and readily biodegradable. Methanol is comprised of three parts hydrogen, oxygen, carbon. Methanol is used to produce other chemical derivatives, which in turn are used to produce thousands of products that touch our daily lives, such as building material, foams, resins, plastics, paints, polyester and a variety of health and pharmaceutical products. Methanol is also a clean burning, biodegradable fuel. Increasingly, methanol’s environmental and economic advantages are making it an attractive alternative fuel for powering vehicles and ships.
Energy related applications for methanol are the fastest growing segments for methanol demand and at present represent 40% of global methanol consumption. In Denmark Methanol is used to provide range extension for battery electric vehicles. Major Chinese automakers such as FAW group, Shanghai Huapa, Geely group, Chang’an, Shanghai maple and SAIC are gearing up for mass production of methanol capable vehicles and fleets of buses and taxis. Geely has two methanol engine and five methanol vehicle manufacturing bases with an annual methanol vehicle production capacity of 3,00,000 – 5,00,000 cars. Danish company Blue World Technologies produces Methanol fuel cell range extenders to increase battery electric car’s range, allowing them to reach 1,000 km which is far beyond the range of an average battery electric vehicle at current time.
Fuel cells use hydrogen as a fuel to produce clean electricity that can power cars, trucks, buses, ships, homes etc. Methanol is excellent and efficient hydrogen carrier fuel, packing more hydrogen in simple alcohol molecule that can be found in liquefied hydrogen. Methanol can be reformed on site at a fueling station to generate hydrogen for fuel cells cars or in stationary power units feeding fuel cells for primary of back up power. Reformer technology can be used on fuel cell vehicles, allowing quick three minutes fueling and extended range. As a simple molecule CH3OH with no carbon to carbon bonds, direct methanol fuel cells can be used for some applications, where methanol reacts directly on the fuel cell’s anode to strip hydrogen atoms to fuel direct methanol fuel cells systems. Since methanol can be produce from a wide range of conventional and renewable feedstocks, it is the most affordable, sustainable and easily handled hydrogen fuel.
Shipping operators around the globe are pressured from governments and big customers to go green by using alternatives to fossil fuel. International Maritime Organizations aims to reduce total shipping emissions by at least 50% from 2008 levels by 2050. Now ships cannot be EV because of their long range distance to travel and no possibility to build charging infrastructure in oceans. So methanol and ammonia are the only two alternatives to crude oil for ships. Danish Firm AP Moller – Maersk, world’s biggest container ship operator has ordered eight methanol power ships to Hyundai Heavy Industries. The order of eight Methanol power ships are expected to be delivered by 2024. This ships can run on both Methanol and crude oil. The total order of eight Methanol power ships is valued at around $1.4 billion.
Production of 1 kg of hydrogen requires 55kwhr of renewable energy, while methanol can be reformed into 1 kg of hydrogen with 0.04 kwhr. Methanol used as a clean fuel in various automotive, shipping and industrial applications, can be used as a liquid carrier of hydrogen in normal containers at ambient temperature, unlike hydrogen that requires specialized and costly cryogenic containers for transport. A methanol molecule has the highest hydrogen to carbon ratio compared to any liquid fuel, and it is used as a hydrogen carrier not just does away with the cost of transporting hydrogen, but also reduces the conversion cost by more than 90%. Methanol fuel cells use hydrogen as a fuel to produce clean energy. Methanol can easily be reformed into hydrogen through a catalytic process at a temperature of 200-300 degree C.
Methanol blending is more cost competitive than ethanol blending, supporting its use as a cost effective alternative fuel, companies like coal India and NTPC are already taking steps to produce and promote methanol. NTPC recently asked carbon clean, and green power international to set up carbon dioxide to methanol demonstration plant at NTPC Vindhyachal. Methanol as a carrier of hydrogen for long haul vehicle is a concept that is at least three years away. Methanol and Ammonia are two options that would be looked at for transporting hydrogen.
4) Ammonia:
Ammonia is more than a fertiliser. The gas liquefies easily under light pressure and chilling, and can be transported to power plants to generate carbon free electricity for industrial, home and many other uses. It can also be cracked into hydrogen a valuable source for fuel cell vehicles. The global ammonia market size was at $67.01 billion in 2020 and is expected to reach $110.93 billion in 2028 growing at a CAGR of 6.4%. Ammonia is used to manufacture fertilisers, textiles, plastics, pharmaceuticals, dyes, pesticides, chemicals, rubber, pulp and paper. CF industries is also in discussion with global utilities and maritime transportation providers to use ammonia directly as a fuel. Indian Ammonia market reached 15.4 million tonnes in 2021 and is expected to reach 16.9 million tonnes by 2026.
Everyone is behind clean energy. The idea of using ammonia as a carrier for hydrogen delivery has gained traction in recent months because ammonia is much easier to liquefy than hydrogen and it is non flammable while hydrogen is flammable so therefore ammonia is much easier to store and transport. It is difficult to transport hydrogen because transporting infrastructure of hydrogen is still not developed and on other side it is easier to transport ammonia because its delivery system already exists. Since at present ammonia is easily transported as it is already used as fertilisers.
Hydrogen can also be made from ammonia. Ammonia with help of electrochemical system can be easily converted into hydrogen and further into hydrogen fuel cells. The ammonia first encounters the catalyst that splits into nitrogen and hydrogen. The hydrogen gets immediately converted to proton, which are then electrically driven across the proton conducting membrane in electrochemical cell. By continuing pulling off hydrogen the reaction goes on further and pure hydrogen is separated from ammonia. The hydrogen separated from ammonia splitting then can be used in a fuel cell. Like batteries, fuel cells produce electric power by converting energy produce by chemical reaction.
Wartsila ship engine builder says they expects to have ammonia fuelled engine operating next year. The company also plans to launch methanol fuelled engine by 2023. Hydrogen does not exists naturally. Secondly hydrogen is not easy to store or transport because of its low volumetric energy density and its small molecular size. Like hydrogen, ammonia is carbon free and can be produce from any energy resource. However there are also some significant advantages in terms of shortage and transportation. Ammonia can be liquefied at room temperature at pressure of 8-10 bar and stores in a similar manner to propane, whereas hydrogen requires expensive cryogenic storage. Ammonia allows safer handling and distribution than hydrogen because ammonia is almost non flammable. Ammonia is second most widely produced chemical in world with over 100 million tonnes per year being transported and as such its worldwide distribution infra already exists and infra of hydrogen supply does not exists presently. Ammonia may be oxidized directly in fuel cells without the need for a separate reactor.
Hydrogen has very low energy density per volume because of it low density. Ammonia’s energy density is comparable to that of CNG and Methanol, but lower than gasoline and LPG. Per unit volume, the cost of hydrogen energy is lower than ammonia but hydrogen has less energy stored per volume than ammonia. Per unit energy, ammonia is the cheapest energy estimated at $13.3/GJ.
Energy Storage Capabilities of Various Fuels :
| Fuel/storage system | P(Bar) | Energy Density (GJ/m³) | Specific Volumetric cost (US$/m³) | Specific Energy Cost (US$/GJ) |
| Ammonia gas / pressurized tank | 10 | 13.6 | 181 | 13.3 |
| Hydrogen / metal hydride | 14 | 3.6 | 125 | 35.2 |
| Gasoline (C8H18) / liquid tank | 1 | 34.4 | 1000 | 29.1 |
| LPG (C3H8) / pressurized tank | 14 | 19 | 542 | 28.5 |
| CNG (CH4) / integrated storage system | 250 | 10.4 | 400 | 38.3 |
| Methanol (CH3OH) / liquid tank | 1 | 11.4 | 693 | 60.9 |
Life Cycle Cost of Hydrogen Production via Various Processes (Figures in US$ / (m³/hour)) :
| Scale of H2 production (m³/hour) | Cost Of H2 Production by water Electrolysis | Cost Of H2 production by natural gas reformation | Cost of H2 production by Methanol Reformation | Cost Of H2 Production by Ammonia Cracking |
| 10 | 0.943 | 0.390 | 0.380 | 0.343 |
| 100 | 0.814 | 0.261 | 0.285 | 0.279 |
| 1000 | 0.739 | 0.186 | 0.226 | 0.241 |
For per unit energy, Ammonia is the cheapest source estimated at $13.3/GJ. The life cycle production cost of energy from ammonia is estimated at $1.2/kWh compared to $3.8/kWh for methanol and $25.4/kWh for hydrogen. Thus ammonia presents very viable and cost effective fuel for fuel cells.
Yara international wants to sell ammonia as fuel for ships. In Japan power companies are experimenting with cofiring ammonia in coal based power plants with aim of converting entirely to ammonia one day. Using ammonia as a fuel dates back to the early 1800 and saw a surge in use as an alternate fuel during world war 2 when stock piles become low. Despite this early start, limited research on using ammonia as a fuel had been conducted until the 2010. The utilization of ammonia for marine fuel has been more aggressively researched since 2007. In fact, fuel system developer such as Alfa Lava and engine developers such as Japan engine corporation have announced plans to include ammonia in their offerings. MAN energy has announced efforts to produce ammonia driven marine operations. Based on high level cost comparison, with further technology development, the use of ammonia as a fuel rather than hydrogen carrier should become the more economical choice. Australia is planning to export Ammonia to Japan as a source of energy. We might see an AMMONIA ECONOMY in future because marriage between ammonia and hydrogen is perfect for carbon free society.
There are many fuel cells which converts chemical into electricity. Like alkaline fuel cells, alkaline membrane fuel cells, proton exchange membrane fuel cells, direct methanol fuel cells and solid oxide fuel cells (SOFC). Hydrogen goes through SOFC to generate electricity. That’s why hydrogen is considered as optimal chemical for electricity production. But the reality is ammonia has shown relatively high efficiency than hydrogen to produce electricity when it goes through SOFC. So ammonia can be directly fed as fuel to produce electricity via SOFC. Plus ammonia acts as hydrogen carrier. So ammonia in liquid form will be transported and then at pumps or electricity plant it will get converted to hydrogen by using SOFC. So the point is in near future ammonia will be directly used as clean fuel because ammonia has higher energy production efficiency when it goes through SOFC as compared with hydrogen. And even if ammonia is not used as direct fuel then also no problem because it will be used as transportation carrier to hydrogen. So the point is ammonia can be a big thing in coming years.
5) Fertilisers:
Global Fertiliser market size was $172 billion in 2020 and will grow at a CAGR of 2.4% from 2021 to 2027 to reach $210 billion. Indian fertiliser market reached Rs 887 billion in 2020 and is expected to grow a CAGR of 5.5% by 2026.
6) Ammonia Nitrate :
Global ammonia nitrate market was at $18.58 billion in 2021 and is expected to reach $24.17 billion by 2026 growing at a CAGR of 5.33%.
7) Nitric Acid:
Global nitric acid market was valued at around $24 billion in 2020 and market is expected to grow at a CAGR of 5% by 2025. Nitric acid demand in India stood at 575 thousand tonnes in FY21 and is expected to reach 930.98 thousand tonnes by 2030 growing at a CAGR of 5.50%. Deepak fertilisers is the largest manufacturer of Nitric acid in India and second largest in South Africa.
SUPPORTING GOVERNMENT POLICIES:
1)Methanol Economy:
Indian Methanol production is expected to reach 20 mega tonnes by using Indian high ash coal, stranded gas and biomass as per the methanol economy program initiated by Niti Ayog. This is expected to have significant impact on import substitution of crude oil for India, and consequently increase the usage of Methanol. Niti Ayog has also drawn out a plan to replace 20% of crude oil imports by methanol alone, seen to lead a reduction in annual fuel bill of India by 15% till 2030. Methanol 15% blend in petrol will reduce pollution by 33% and diesel replacement by methanol will reduce more than 80%. Field trials are underway for India to adopt Methanol as fuel. At least 20% diesel consumption can be reduced in next 5-7 years and will result in a saving of Rs 26,000 crore annually. Rs 6,000 crore can be annually saved from reduced bill in LPG in next 3 years. The methanol blending program with petrol will further reduce fuel bill by at least Rs 5,000 crore annually in next 3 years. It is estimated that cost of gasoline including taxes is Rs 94.49 per litre. The cost of ethanol including taxes on an energy equivalent basis with gasoline is Rs 69.9 while the cost of Methanol on an energy equivalent basis with gasoline is $37.6 making methanol more economical compared with ethanol and petrol.
2) The government of India is working on plan to use methanol as fuel for inland waterway transport and in army truck as a part of a strategy to cut dependence on imported fuel.
DEEPAK FERTILISERS INVESTMENTS IN PRODUCTION EXPANSION:
1)Ammonia:
Company plans to invest Rs 1,475 crore in new ammonia manufacturing plant in Taloja. The new ammonia plant will have production capacity of around 5,00,000 MTPA.
2) Ammonia nitrate:
Company’s new ammonia nitrate plant in Gopalpur will start producing 377 kilo tonne of ammonia nitrate per annum from august from 2024. 50% of engineering work is completed. Total project will cost company around Rs 2,200 crore. The new plant will help to cut import bill of Rs 4,500 Crore per annum.
3) Isopropyl Alcohol:
Company is in process of setting up another 1,00,000 MT plant of Isopropyl Alcohol in near future.
4) Company is in talks with multiple foreign companies for potential partnerships, as it looks to hive off its key businesses into separate corporate entities. Discussion are ongoing with large global players in all three of its key businesses, industrial chemicals, fertilisers and mining chemicals.
Update on Upcoming Projects:
| Capacity (MTPA) | Q4FY21 | Ammonia Expansion | Q1FY24 | TAN Expansion | Q2FY25 |
| Ammonia | 1,28,700 | +5,10,000 | 6,38,700 | 6,38,700 | |
| Technical Ammonia Nitrate | 4,86,900 | 4,86,000 | +3,76,000 | 8,62,900 | |
| Industrial Chemical | 13,62,160 | 13,62,160 | 13,62,160 | ||
| Crop Nutrition Business | 9,85,720 | 9,85,720 | 9,85720 |
For Ammonia:
Total planned Investment: Rs 4,350 cr
• Cost incurred to date: Rs. 2,074 cr
• Debt incurred to date: Rs. 930 cr
• Balance investment: Rs. 2,276 cr
• Expected commissioning: Q1 FY24
For TAN:
• Total planned Investment: Rs. 2,200 cr
• Cost incurred to date: Rs. 357 cr
• Debt incurred to date: Rs. 0
• Period investment: Rs. 700 – 900 cr
• Balance investment for TAN planned capex
• Expected commissioning: Q2 FY25
FINANCIALS:
Consolidated Results:
| FY16-17 | FY17-18 | FY18-19 | FY19-20 | FY20-21 | |
| Revenue from Operations (Rs in crores) | 4,378 | 6,062 | 6,742 | 4,685 | 5,808 |
| EBITDA (Rs in crores) | 473 | 545 | 459 | 464 | 955 |
| EBITDA Margin (%) | 10.81 | 8.99 | 6.81 | 9.91 | 16.45 |
| PAT (Rs in crores) | 155 | 164 | 73 | 89 | 406 |
| PAT Margin (%) | 3.53 | 2.71 | 1.09 | 1.90 | 7.00 |
| EPS | 17.53 | 18.44 | 8.01 | 9.58 | 41.47 |
| Total Assets (Rs in crores) | 5,048 | 6,991 | 7,118 | 6,931 | 7,143 |
| Net Worth (Rs in crores) | 2,016 | 2,046 | 2,098 | 2,181 | 2,703 |
| Gross Debt To Equity | 1.00 | 1.73 | 1.45 | 1.34 | 0.93 |
Consolidated Segment wise Margin and Revenue (Figure in Crores):
| Segment | FY19-20 | FY20-21 |
| Chemical Revenue | 2,744 | 3,157 |
| Fertiliser Revnue | 1,912 | 2,637 |
| Chemical segment margin | 414 | 744 |
| Fertiliser Segment Margin | 33 | 198 |
| Parameters | FY19-20 | FY20-21 |
| Debt Turnover | 3.51 | 5.32 |
| Inventory Turnover | 6.20 | 8.79 |
| Interest Coverage Ratio | 2.30 | 5.26 |
| Current Ratio | 1.01 | 1.37 |
| D/E Ratio | 1.34 | 0.93 |
| Operating Margin (%) | 5.35 | 12.80 |
| Net Margin (%) | 1.90 | 7 |
| Return On net worth (%) | 4.16 | 16.65 |
Product wise sales Volume (Figures in MT):
| Products | FY19-20 | FY20-21 |
| Methanol | 18,239 | 1,068 |
| Iso Propyl Alcohol | 61,584 | 55,025 |
| Propane | 10,097 | 9,537 |
| Dilute Nitric Acid | 63,899 | 53,284 |
| Concentrated Nitric Acid | 1,38,229 | 1,42,850 |
| Strong Nitric Acid | 27,568 | 23,240 |
| Technical Ammonium Nitrate | 4,36,203 | 4,27,801 |
| Bulk Fertiliser Traded | 84,311 | 1,52,044 |
| Nitro Phosphate fertilizer | 2,19,996 | 2,44,684 |
| NPK Fertiliser | 2,86,226 | 4,41,091 |
| Bentonite Sulphur | 23,500 | 30,106 |
| Liquid Carbon Dioxide | 55,254 | 45,295 |
| Water soluble Fertilisers | 736 | 458 |
| Water Soluble Fertilisers (traded) | 23,860 | 27,418 |
| Windmill Power (KWH) | 14,870 | 10,088 |
| Traded Chemical | 91,807 | 61,283 |
Product Wise Production Volume (Figures in MT):
| Product | FY19-20 | FY20-21 |
| Ammonia | 98,808 | 86,840 |
| Methanol | 18,086 | 2,821 |
| Iso Propyl Alcohol | 60,387 | 55,184 |
| Propane | 10,320 | 9,641 |
| Dilute Nitric Acid | 6,53,831 | 6,25,915 |
| Concentrated Nitric Acid | 1,53,078 | 1,54,051 |
| Strong Nitric Acid (SNA) | 24,846 | 23,306 |
| Technical Ammonium Nitrate | 4,40,212 | 4,24,451 |
| Nitro Phosphate Fertiliser | 2,12,568 | 2,35,127 |
| NPK Fertiliser | 2,73,142 | 4,19,990 |
| Bentonite Sulphur | 22,721 | 29,248 |
| Liquid Carbon Dioxide | 55,259 | 45,183 |
| Windmill Power (‘000 KWH) | 15,015 | 10,382 |
REVENUE MIX FOR KEY PRODUCTS (Figures in %):
| Products | FY19-20 | FY20-21 |
| ANP, NPK, Bensulf, WSF | 35.49 | 37.37 |
| TAN | 24.66 | 25.74 |
| Bulk Chemical Trading | 10.76 | 8.61 |
| Nitric Acid | 10.29 | 8.98 |
| IPA and Propane | 9.60 | 10.67 |
| Outsourced Bulk Fertilisers | 4.22 | 5.72 |
| Outsourced Agro Speciality | 2.89 | 2.55 |
| Others | 1.16 | 0.32 |
| Methanol | 0.93 | 0.06 |
Despite the various challenges incurred due to covid-19 pandemic company has achieved revenues of Rs 5,808 cr in FY21. The company’s profit for FY21 stood at Rs 406 crore which is highest ever profit. In FY21 company’s profit jumped by around 4.5 times. And company reduced debt by around Rs 840 crore. EBITDA has doubled with the margins at 16.45% in FY21. Net Debt/Equity reduced from 1.20x to 0.65x. EPS of company has grown from 17.53 in FY16-17 to around Rs 40 in FY21. Company is available at PE of just 10
In Q3FY22 company posted 103% jump in net profit to Rs 180.61 crore from Rs 88.95 crore registered in Q3FY21. Revenue from operations increased 35.1% Y-o-Y to Rs 1,955.7 crore in Q3FY22 from Rs 1,447.1 crore posted in the same period last year. EBITDA stood at Rs 353 in Q3FY22 rising by 22% from Rs 217 crore posted in the same period last year. Only negative is promoter holding is pledged. In September quarter promoter holding pledge come down to 30% from 70% but again in December quarter promoter holding pledge went to 92%. In December quarter FII increased stake from 1% to around 11%.
I have started tweeting the above research about DEEPAK FERTILISERS on my twitter handle Pritesh7994 from 10 December 2021 at Rs 350. And till today 7 February 2022 it made High Of Rs 659.90. The final report was made on 7 February 2022 at CMP of Rs 620.80 .