Deepak Fert rises and falls

Deepak Fertilisers, for Q4FY21, posted a good set of earnings. Its net profit for the quarter came in at Rs.116 crore v/s Rs.22 crore (YoY), up over 5 times This was on a 22% increase in revenue from operations at Rs.1575 crore. Higher production and better realisations helped the company posted this performance.

EBITDA was up 124% at Rs.273 crore and margins almost doubled up from 9.2% to 17.3% (YoY) and sequentially, up from 15%.

Its net debt currently stands at Rs.1826 crore, down 31% (YoY), resulting in a 23% drop in finance costs.

The company announced a dividend of Rs.7.50/share.

The stock price, initially reacted positively, rising 3% to hit a new high at Rs.315.95 and profit booking at these levels has pushed the stock back into the red.