MIRA
INFORM REPORT
|
Report Date : |
25.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED |
|
|
|
|
Registered Office : |
Opposite
Golf Course, Shastri Nagar, Yerawada, Pune-411 006, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-021360 |
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Paid-up Capital: |
Rs.882.049 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24121MH1979PLC021360 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD10002G |
|
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|
|
PAN No.: [Permanent
Account No.] |
AAACD1388D |
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Legal Form : |
It is
a public limited liability company.
The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer
of Ammonia, Methanol, Nitric Acids, Low Density Prilled Ammonium Nitrate etc. |
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|
|
|
No. of
Employees: |
15000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 43000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having good track. Financials of the
company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Debasish |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-20-66458000 |
|
Date : |
24.04.2012 |
LOCATIONS
|
Registered Office / Corporate Office : |
Opposite Golf Course, Shastri Nagar, Yerawada, Pune -411006,
|
|
Tel. No.: |
91-20-26684155/26684342/26684597/26684235/26458000 |
|
Fax No.: |
91-20-26687499/26683727 |
|
E-Mail : |
rsriraman@deepakfertilisers.com
investorgrievance@deepakfertilsers.com
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|
Website : |
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Location: |
Owned |
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|
Factory : |
Plot
No. K-1, MIDC Industrial Area, Taloja, A. V. – 410 208, District Raigad, |
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Tel. No.: |
91-22-67684000 |
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Fax No.: |
91-22-27412413 |
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E Mail: |
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Factory 2 : |
Plot
No. 32, Sector 16, |
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Branch : |
Located at: ·
New Delhi |
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E-Mail: |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. C. K. Mehta |
|
Designation : |
Chairman |
|
Qualification : |
Undergraduate |
|
Date of Appointment : |
31.05.1979 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr. S. C. Mehta |
|
Designation : |
Vice
Chairman and Managing Director |
|
Qualification : |
B.
Com., M.B.A. ( |
|
Date of Appointment : |
04.09.1985 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. Basu |
|
Designation : |
Director |
|
Qualification : |
Master’s
Degree in Economics |
|
Date of Appointment : |
27.07.2000 |
|
Other
Directorships :- |
|
|
|
|
|
Name : |
Mr.
N. C. Singhal |
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Designation : |
Director |
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|
Name : |
Mr. U. P. Jhaveri |
|
Designation : |
Director |
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|
Name : |
Mr. S. R. Wadhwa |
|
Designation : |
Director |
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|
|
Name : |
Dr. S Rama Iyer |
|
Designation : |
Director |
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|
|
|
Name : |
Mrs. Parul S.
Mehta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. C. Mehta |
|
Designation : |
Director |
|
Qualification : |
B.
Sc. |
|
Date of Appointment : |
31.05.1979 |
|
Other
Directorships :- |
· Deepak Nitrite Limited · Nova Synthetic Limited · Skyrose Finvest Private
Limited · Sundown Finvest Private
Limited · Forex Leafin Private Limited · Pranawa Leafin Private Limited · Hardik Leafin Private Limited · Samoon Investment and Finance
Private Limited · The Lakaki Works Private Limited |
|
|
|
|
Name : |
Mr. Anil Sachdev |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Pranav Vakil |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R Sriraman |
|
Designation : |
Senior Vice President (Legal) and Company Secretary |
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|
|
|
Name : |
Mr. Debasish |
|
Designation : |
Finance Manager |
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|
Management Team: |
Dr. T. K. Chatterjee, President – Strategic Initiatives and Projects Mr. Somnath Patil, President and CFO Mr. Rajendra Sinh, President – HRD and Corporate Services Mr. Anand Sundaram, CEO- VARE Dr. Rajeev Chemburkar, President – Chemicals Mr. Guy R Gove, President – Agribusiness Mr. Ranjan Basu - Senior Vice President – Operations Mr. R. P. Haran - Senior Vice President – Corporate Affairs Mr. Vivek Y. Kelkar - Sr. Vice President – Strategic Communications
& Investor Relations Ms. Swati Sundareswaran - Asst. Gen. Manager – Public Relations Mr. S. Kartik - General Manager – Commercial |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19556085 |
22.17 |
|
|
18655372 |
21.15 |
|
|
38211457 |
43.32 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
38211457 |
43.32 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7180833 |
8.14 |
|
|
25975 |
0.03 |
|
|
1302744 |
1.48 |
|
|
11974529 |
13.58 |
|
|
20484081 |
23.22 |
|
|
|
|
|
|
5950458 |
6.75 |
|
|
|
|
|
|
18038262 |
20.45 |
|
|
22944062 |
3.34 |
|
|
2576623 |
2.92 |
|
|
12897 |
0.01 |
|
|
2378976 |
2.70 |
|
|
184750 |
0.21 |
|
|
29509405 |
33.46 |
|
Total Public shareholding (B) |
49993486 |
56.68 |
|
Total (A)+(B) |
88204943 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
88204943 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Ammonia, Methanol, Nitric Acids, Low Density Prilled Ammonium Nitrate etc. |
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Products : |
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Brand Names : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
(MT) |
125400 |
125400 |
150926 |
|
CNA |
(MT) |
79200 |
79200 |
93546 |
|
DNA |
(MT) |
445500 |
445500 |
308950 |
|
Methanol |
(MT) |
100000 |
100000 |
81888 |
|
IPA |
(MT) |
70000 |
70000 |
67462 |
|
Propane |
(MT) |
-- |
-- |
9166 |
|
Crude IPE |
(MT) |
-- |
-- |
2557 |
|
TAN |
(MT) |
429000 |
429000 |
146827 |
|
CO2 |
(MT) |
33000 |
33000 |
30403 |
|
NP |
(MT) |
229500 |
229500 |
125231 |
|
|
(MT) |
25000 |
25000 |
11254 |
|
Power |
KWH |
87600000 |
87600000 |
15427120 |
GENERAL INFORMATION
|
No. of Employees : |
15000 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
B. K.
Khare and Company Chartered
Accountants |
|
Address : |
706/708,
Sharda Chambers, New Marine Lines, Mumbai – 400 020, Maharashtra, India |
|
Tel No.: |
91-22-22000607
/ 7318 / 6360 / 66315835 / 36 |
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Fax No.: |
91-22-22003476 |
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E-mail : |
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Solicitors: |
|
|
|
|
|
Associates: |
·
Blue
Shell Investments Private Limited ·
Deepak
Nitrite Limited ·
Nova
Synthetic Limited ·
Yerrowda
Investments Limited ·
The
Lakaki Works Private Limited ·
Superpose
Credits And Capital Private Limited ·
Storewell
Credits And Capital Private Limited ·
High
Tide Investments Private Limited ·
Deepak
Asset Reconstruction Private Limited ·
Mahadhan
Investment And Finance Private Limited ·
Ishanya
Foundation ·
Ishanya
Realty Corporation Limited ·
Ishanya
Brand Services Limited |
|
|
|
|
Subsidiaries |
·
Smartchem Technologies Limited ·
Deepak Nitrochem Pty. Limited ·
Deepak Mining Services Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 millions |
|
1000000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.100.000 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs.1350.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88204943 |
Equity Shares |
Rs.10/- each |
Rs.882.049 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
882.049 |
882.049 |
882.049 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9779.115 |
8421.949 |
7149.087 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10661.164 |
9303.998 |
8031.136 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7756.673 |
6811.969 |
4460.759 |
|
|
2] Unsecured Loans |
0.000 |
500.000 |
1616.755 |
|
|
TOTAL BORROWING |
7756.673 |
7311.969 |
6077.514 |
|
|
DEFERRED TAX LIABILITIES |
806.144 |
621.018 |
650.548 |
|
|
|
|
|
|
|
|
TOTAL |
19223.981 |
17236.985 |
14759.198 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10168.915 |
7587.263 |
7291.772 |
|
|
Capital work-in-progress |
2713.344 |
4141.588 |
2435.032 |
|
|
|
|
|
|
|
|
INVESTMENT |
1135.718 |
1557.734 |
1544.569 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1567.675
|
1116.321
|
985.404
|
|
|
Sundry Debtors |
2500.495
|
1981.247
|
2719.452
|
|
|
Cash & Bank Balances |
2690.734
|
2062.429
|
1589.523
|
|
|
Other Current Assets |
34.797
|
17.332
|
32.785
|
|
|
Loans & Advances |
1486.437
|
1090.012
|
867.057
|
|
Total
Current Assets |
8280.138
|
6267.341
|
6194.221 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
987.195
|
643.451 |
1345.046 |
|
|
Other Current Liabilities |
1354.786
|
1033.583
|
843.441 |
|
|
Provisions |
732.153
|
639.907
|
523.397 |
|
Total
Current Liabilities |
3074.134
|
2316.941
|
2711.884 |
|
|
Net Current Assets |
5206.004
|
3950.400
|
3482.337 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
5.488 |
|
|
|
|
|
|
|
|
TOTAL |
19223.981 |
17236.985 |
14759.198 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
15648.177 |
12879.783 |
14121.069 |
|
|
|
Other Income |
358.227 |
449.030 |
360.014 |
|
|
|
TOTAL (A) |
16006.404 |
13328.813 |
14481.083 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
12146.084 |
10149.446 |
11322.200 |
|
|
|
Inventory Adjustment |
40.563 |
[54.756] |
76.779 |
|
|
|
Prior Year’s Adjustment |
17.599 |
0.173 |
0.562 |
|
|
|
Exceptional Item |
33.809 |
[250.436] |
33.111 |
|
|
|
TOTAL (B) |
12238.055 |
9844.427 |
11432.652 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3768.349 |
3484.386 |
3048.431 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
439.013 |
463.289 |
404.664 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3329.336 |
3021.097 |
2643.767 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
714.671 |
643.321 |
523.758 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2614.665 |
2377.776 |
2120.009 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
748.424 |
657.296 |
632.973 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1866.241 |
1720.480 |
1487.036 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6091.764 |
5117.784 |
4194.944 |
|
|
|
Transfer
from Debenture Redemption Reserve |
38.000 |
28.500 |
28.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transferred to Debenture Redemption Reserve |
179.200 |
154.200 |
62.500 |
|
|
|
Transferred to General Reserve |
187.000 |
175.000 |
150.000 |
|
|
|
Proposed Divided (Net of Earlier year’s reversal) |
440.865 |
397.100 |
352.831 |
|
|
|
Corporate Dividend Tax |
66.392 |
48.700 |
27.365 |
|
|
|
BALANCE CARRIED
TO THE B/S |
7122.548 |
6091.764 |
5117.784 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value |
460.824 |
422.381 |
456.782 |
|
|
|
Other Earnings |
37.817 |
28.391 |
84.605 |
|
|
TOTAL EARNINGS |
498.641 |
450.772 |
541.387 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1154.616 |
572.463 |
1420.775 |
|
|
|
Stores & Spares |
102.209 |
124.515 |
51.694 |
|
|
|
Capital Goods |
91.578 |
97.430 |
7.217 |
|
|
|
Traded Goods |
1152.158 |
1439.419 |
3138.806 |
|
|
TOTAL IMPORTS |
2500.561 |
2233.827 |
4618.492 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.16 |
19.51 |
16.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd Quarter
|
3rd
Quarter |
|
Net Sales |
4738.700 |
5771.900 |
6014.900 |
|
Total Expenditure |
3609.900 |
4793.100 |
5016.200 |
|
PBIDT (Excl OI) |
1128.800 |
978.800 |
998.700 |
|
Other Income |
67.800 |
118.600 |
71.900 |
|
Operating Profit |
1196.600 |
1097.400 |
1070.600 |
|
Interest |
127.000 |
149.500 |
222.300 |
|
PBDT |
1069.600 |
947.900 |
848.300 |
|
Depreciation |
190.600 |
196.100 |
219.300 |
|
Profit Before Tax |
879.000 |
751.800 |
629.000 |
|
Tax |
239.600 |
212.800 |
132.500 |
|
Profit After Tax |
639.400 |
539.000 |
496.500 |
|
Net Profit |
639.400 |
539.000 |
496.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
11.66
|
12.91 |
10.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.71
|
18.46 |
15.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.17
|
17.16 |
15.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.26 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.02
|
1.03 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.69
|
2.71 |
2.28 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
SUNDRY CREDITOR DETAILS:
(Rs.
In Millions)
|
Particulars
|
31.03.2011 |
31.03.2010 |
31.032009 |
|
|
|
|
|
|
Sundry Creditors |
987.195 |
643.451 |
1345.046 |
HISTORY
Promoted
in 1979 by Deepak Nitrite and C K Mehta as a private limited company, subject became
a public company in 1982. It manufactures anhydrous liquid ammonia. The 272-tpd
plant at Taloja went on stream in Dec.'83. The plants are located in the well
developed industrial area at Taloja near
Smartchem Technologies Limited and Deepak Nitrochem Pty Limited,
The company diversified into the manufacture of ammonium nitro-phosphate (ANP)
fertiliser (cap.: 23 Millions TPA) and integrated into the manufacture of
concentrated nitric acid (33,000 tpa), ammonium nitrate (36,000 tpa) and dilute
nitric acid (200,000 tpa). It also set up a 100,000-tpa methanol project which
was part financed through a public issue of convertible debentures in Jan.'89.
DFL has a technical collaboration with Fish International Engineers, US and
Stamicarbon, the
Keeping in mind the constraint of gas supply, the company had invested in a
port-based storage facility for imported ammonia. The Company is also exploring
the possibility of increasing the number of sources of Ammonia including the option
of setting up a gas-based Ammonia plant abroad and also studying oppportunities
for broad-basing industrial chemical products through forward integration. The
company has implemented the debottlenecking of Ammonia Plant but the additional
gas supply was never received.
The expansion of NP fertilizer plant to 3, 00,000 tons p.a and LDAN plant to 1,
00,000 tons p.a was taken up in 2001-02. The engineering work for AN Melt
capacity was completed and the above the plants were commissioned during 2002-03
there by enhancing the capacity by 90,000 tpa. Technology for the new plant has
been supplied by
The company has increased the installed capacity of CNA by 23100 MT during
2004-05 and with this expansion the total installed capacity of CNA has
increased to 79200 MT.
OPERATION:
Sales (including other income) increased to Rs. 16006.400 Millions
(including Rs. 2688.600 Millions from trading operations) as against Rs. 13328.800 Millions (including Rs. 2933.700 Millions
from trading operations) for the
previous year. PBT for the year improved to Rs.
2614.700 Millions as against Rs. 2377.800 Millions in the previous year.
Net Profit for the current year was Rs.
1866.200 Millions as compared to Rs.
1720.500 Millions in the previous year.
SECURED DEBENTURES
In accordance with the terms of
issue of Secured Non-Convertible
Debentures of Rs. 1.000 Million each aggregating Rs. 200.000 Millions
and Rs. 180.000 Millions, earlier issued in favour of Financial Institutions,
the Company during the year has fully
redeemed the Debentures on the due date
15th September, 2010 and 30th September, 2010
respectively.
During the year, for augmenting
the long term resources and for meeting general
corporate expenditure, the Company has issued
Secured Non-Convertible Debentures of Rs. 1.000 Million each aggregating
Rs. 500.000 Millions on Private
Placement Basis and these Debentures are listed on the National Stock Exchange of India Limited.
These Debentures carry coupon rate of
9.31% and are due for repayment at the end of five years from the date of allotment as per the terms
and conditions of issue.
THE MACRO-SCENARIO
The Indian economy continued to shine through the financial
year 2010-11(FY 11). The Indian economy grew at 8.6%. It is expected to
continue growing around 7.5 to8% driven largely by domestic demand drivers, the
service sector growth momentum and exports.
Infrastructure is likely to follow its growth trajectory.
The gradual opening up of the mining sector to private players should also
augur well for the economy. The agri-products and consumer demand are also
expected to continue with the present trend.
However, expectations for the medium term may need to be
slightly mellowed. The International Monetary Fund (IMF) in its April 2011
World Economic Outlook (WEO) has assumed crude oil prices at US$ 107 per barrel
for the year. The current high demand pressure for oil is expected to
exacerbate with fresh Japanese demand. Concerns about supply disruptions due to
political developments in the
Further, domestic and global inflation levels remain a cause
for concern. Interest rates may further firm up through FY12. FII and FDI
inflows are expected to remain strong and bank liquidity is still positive.
Credit growth is likely to get impacted as interest rates firm up.
THE SCENARIO FOR DFPCL
Given its product and customer profile, with its pronounced
tilt towards the Indian farmer, the mining sector, the chemicals customer and
the urban consumer, and its considerable strengths in product pricing derived
from its advantages of scale, proximity, distribution network, quality,
technical services and brands, the Company's potential for growth remains
positive.
Raw Materials
The Company's key raw materials are Natural Gas and its
derivative, Ammonia, along with Propylene, Phosphoric Acid and
Multiple sources of gas are now available in
However, recent pronouncements from the Government's
Directorate General of Hydrocarbons and some of
On the other hand, ONGC announcements about its strong focus
on gas exploration at the KG basin, gas from marginal fields and the
availability of LNG are positive signals. The Company will continue to monitor
the developments carefully and will take appropriate steps to develop options
so that supplies of such crucial raw materials are well managed.
On the Ammonia front, the Company will need a combination of
in-house manufacture and outsourcing to maximise downstream capacity
utilisation at its plants in the coming years. While Ammonia prices, globally,
have been on an uptrend in recent months, the Company's location and storage
facilities enable it to source Ammonia either domestically or from the world
markets. Besides stepped up domestic Ammonia sourcing, the Company has tied up
with a prominent
Propylene prices have been increasing in recent months.
Globally Iso Propyl Alcohol(IPA) prices have generally moved in tandem with
Propylene prices. Thus, the Company is confident that it can keep its margins
reasonably intact.
The Company is also working on a strategy to ensure
consistent and adequate quantities of Phosphoric Acid. Price outlook for this product
is expected to remain largely stable. Further the new Nutrient Based Subsidy
scheme is also expected to help absorb any potential price hikes.
Fertiliser/Agri-sector
The Government's new Nutrient Based Subsidy (NBS) policy,
introduced from April 1,2010, has been positive for all the stakeholders viz.
the Indian farmer, the fertilizer industry and the Company. Along with improved
production planning and cost management, better margins have been achievable in
the fertiliser sector. The Indian fertilizer industry is now clearly poised on
a new growth trajectory. The strong growth trends for both horticulture and
food crops production as well as attractive prices are expected to have a
positive impact on agri-exports from
The Company continues to drive growth with its strategy of
providing a complete basket of products and services to the Indian farmer. Its
strong brands and customer relationships, robust distribution networks and
knowledge-driven services are the key in this regard. Output management of
horticultural products as a service and business driver will be expanded
strategically, to achieve a competitive edge.
CHEMICALS
Technical Ammonium Nitrate (TAN)
Industrial Chemicals
According to recent estimates, the Indian chemical industry
growth is lagging behind GDP growth, highlighting its high demand potential.
The Company's key industrial chemicals products viz, Nitric Acid, Iso Propyl
Acohol (IPA) and CO 2 serve some of the fastest growing sectors of Indian
Industry.
Nitric Acid is a basic commodity chemical with widespread use
across several sectors. Demand estimates for the Indian Nitric Acid market are
around 8% given the high levels of growth in nitro-aromatics, pharmaceuticals
and dyestuffs, in particular.
The biggest user of IPA in
Thus, with the continuing consumer demand, the outlook for
the Company's key industrial chemical products remains strong.
REALTY SECTOR
According to McKinsey, the expansion of domestic consumption
in
This highlights the potential in Indian retail and, by
consequence, in retail-facilitation structures like malls where research
indicates that with changing aspiration-based lifestyles, categories that
define perceptual social identity will become key growth areas. Therefore,
apparels, home textiles, leisure, consumer durables, jewellery and watches etc.
are expected to show clear and strong growth strengths.
Further, in comparison to a plain vanilla mall, the
lifestyle seeking consumer now clearly prefers a differentiated offering - the
lifestyle centre - which goes beyond just shopping and helps enhance lifestyle
aspirations. In keeping with these trends the Company has been working on
changing its mall venture, Ishanya, into a true world-class lifestyle centre
with the new High Street Ishanya concept. New categories include lifestyle
accessories, fine-dining and world-class entertainment options. The Company is
confident that this new strategy will improve the overall business value to the
shareholders.
Detailed Financial and Operational Analysis
Financial Analysis
During the year 2010-11 the Company has shown increased
production levels across all its major products.
Total Revenue for 2010-11 stood at Rs. 16006.400 Millions against Rs. 13328.800 Millions in2009-10, an
increase of 20%. Sales for the agri-business grew 20% to Rs. 5284.500 Millions in2010-11 from Rs. 4391.800 Millions in 2009-10 while
sales for the chemicals business grew 26%to Rs. 10759.400
Millions in 2010-11 from Rs. 8524.600
Millions in 2009-10.
Profit Before Tax increased to Rs. 2614.700
Millions in 2010-11 from Rs. 2377.800
Millions in2009-10, while Net Profit stood at Rs. 1866.200
Millions in 2010-11 against Rs. 1720.500
Millions in 2009-10. Net Profit for the year is not comparable with the
previous financial year given the exceptional gain of Rs. 257.100 Millions (net) arising from
sale of surplus land in FY10.
Earnings Per Share went up to Rs. 21.16
compared to Rs. 19.51 in
the previous year. The Company's operating margins stood at 22.01% against
21.62% in 2009-10.
The Company's financial position continues to remain sound.
The average debt cost stood at 9.24% for 2010-11 against 9.88% for 2009-10.
During 2010-11, long term funds of Rs. 2040.000 Millions were borrowed mainly
to finance the new 3,00,000 MT TAN project.
Short-term borrowings stood at Rs. 1160.200
Millions in FY 11 against Rs. 1221.600
Millions in FY 10. For 2010-11, the outstanding debt stood at Rs. 7756.700 Millions against Rs. 7312.000 Millions in 2009-10. The
debt-equity ratio stood at a healthy 0.62 as compared to 0.65 in previous year.
The current ratio, including liquid investments, was at 2.79 in 2010-11against
2.96 in 2009-10.
Operational Analysis
The Company utilised 0.650 MMSM per day of Natural Gas 3
(NG) during the year on an average, compared to 0.582 MMSM per day of 3NG
during 2009-10.
Ammonia requirements for the year were met through both
in-house manufacture and outsourcing. Production levels of Ammonia increased
during the year to1,07,100 MT against 1,00,851 MT in 2009-10. The Company
outsourced 43,826 MT of Ammonia from the market.
Product-wise business review
The Company's production reached record levels for Ammonia, Liquid
CO2, IPA, DNA and Bensulf for the year. Capacity utilisation will now be
maximized in the coming year with better raw material management and
operational efficiencies.
Fertiliser/Agri-Sector
The total bulk fertiliser sales volume for 2010-11 was 2,84,935
MT against 2,61,655 MT for 2009-10. Total revenue from the agri-business grew
20% to Rs. 5311.800
Millions in 2010-11from Rs. 4420.700
Millions in 2009-10.
Production volumes of Nitro-Phosphate Fertiliser (NP) rose
to 1,25,231 MT from 1,00,284MT. Capacity utilisation was not optimal during the
year owing to technical problems at the plant during the second quarter of FY
11 and the oil spill on the West Coast of India causing a diversion of phos
acid shipment during the third quarter of the year.
The Company successfully introduced the 24:24:0 grade of NP
during the second half of the year. While enhancing crop productivity, the new
grade will also help increase margins. Production volumes of Sulphur Bentonite
rose to 11,254 MT in 2010-11against 10,191 MT in 2009-10. Sales of speciality
fertilisers saw an increase of 33% in value terms.
Nutrient management and advisory services continued to be a
focus area. The nine Saarrthie centres now service about 7,648 hectares of
cultivable land and have 9,808farmer members. The Company's efforts to meet
Global GAP standards for its agri-produceand its stringent quality practices
have enabled it to develop a Deepak GAP (Good Agricultural Practices) Standard
for its agri-products exports for the global markets. The Company has also
obtained the National Accreditation Board for Testing and Calibration
Laboratories (NABL) Accreditation which is the Highest Standard for GLP – Good
Laboratory Practices.
The Company's move to expand its geographical footprint into
states like Punjab and Haryana, in addition to the traditional markets of
Maharashtra, Gujarat, Karnataka and
Industrial Chemicals
The total revenue for the chemical segment increased to Rs. 10759.400 Millions in 2010-11against Rs. 8524.600 Millions during 2009-10,
registering a growth of 26%.
• Technical Ammonium Nitrate (TAN)
Overall sales volumes for TAN stood at 1,46,115 MT for the
year 2010-11 against the previous year's sales of 1,33,043 MT, a growth of 10%.
The Company, along with its subsidiary, Smartchem Technologies Limited, enjoys
around 30% market share in the domestic market.
The new 3,00,000 MTPA TAN plant has already commenced
production and its product quality is well received by the market. As a
start-up, the Company successfully produced29,503 MT of TAN at its new plant
during the year. The WNA plant supporting this TAN complex is currently being
stabilised. Capacity utilisation levels at the new plant are expected to be
gradually scaled up during 2011-12, to peak in 2012-13. The Company's efforts
to augment its distribution chain are well underway with the setting up of
warehouses close to the customer. Improved logistics management systems have
also been put into place for efficient and cost-effective movement via rail and
road.
TAN produced at the new plant will replace the low-quality
Fertiliser Grade Ammonium Nitrate currently being imported into
• Methanol
Riding on improved global prices, Methanol production during
the year rose to 81,888 MT as compared to 65,647 MT of the previous year.
• Iso Propyl Alcohol
During the year, the Company recorded the highest production
and sale of IPA. The Company is the only manufacturer of this product in
The Company is the market leader for IPA in
• Acids
The Company is
Currently, the Company's market share of Nitric Acid put
together is about 39% in the Indian market.
• Liquid CO2
Demand for this product, a by-product of Ammonia, was good.
Total sales volume stood at 30,310 MT in 2010-11 against
29,176 MT in 2009-10.
The Company's customer relationship in the Chemical Sector
and its ability to offer world-class service with its domestic geographical
advantages will be a key source of competitive advantage in the years to come.
REALTY
This segment of the Company’s business is now in a turn
around phase. Total revenues from this segment stood at Rs. 118.000 Millions in 2010-11 against Rs. 139.900 Millions in 2009-10. As of 31st
March, 2011, occupancy at Ishanya stood at 1,92,553 sq. ft. despite the
continuing construction work on the remodelling of the mall for its new High
Street positioning. During the year footfalls continued to be robust with
several activities like fairs and shows drawing crowds at key junctures in the
consumer shopping cycle. Brand recall for Ishanya continues to be good in its
key catchment areas.
The new High Street Ishanya concept, with its expanded range
of offerings to the consumer, at the Company’s iconic mall in Pune, is drawing
a good response across the Indian retail industry, as a result of which an
additional 2,00,000 sq. ft. of space has been committed for 2011-12. The
Company is confident that the new High Street Ishanyawill improve the business
as well as its brand value.
FUTURE PROJECTS
In keeping with its strategic growth focus on the Chemicals
sector, the Company is envisaging a 3,00,000 MT Technical Ammonium Nitrate
project in South Australia, for which land has been identified by the local government
near the deep sea port of Bonython. The Company will now conduct detailed
Environmental Impact Assessment and Feasibility Studies over the next 12 to 15
months. On confirmation of technical and financial feasibility, the project can
be completed in a 24 months timeframe thereafter.
The Company has also taken up the project of a third CNA
plant as also retro fitting its AN melt and fertiliser plant capacities.
Going forward the Company is keenly considering other
chemical, fertiliser and agri projects. A close study on backward integrations
/ strategic alliances for all raw materials is also underway.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2011
(Rs. in Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
||
|
(Unaudited) |
||||
|
|
|
|
|
|
|
1 |
Sales |
6300.000 |
6073.000 |
17402.200 |
|
Less: Excise Duty |
313.300 |
329.600 |
952.500 |
|
|
(a) Net Sales |
5986.700 |
5743.400 |
16449.700 |
|
|
(b) Other Income from Operations (incl. realty income) |
28.200 |
28.500 |
75.800 |
|
|
|
Income from Operations |
6014.900 |
5771.900 |
16525.500 |
|
2 |
Expenditure |
|
|
|
|
(a) Decrease/(Increase) in Stock in Trade and Work -in- progress |
(1068.100) |
(72.400) |
(1365.300) |
|
|
(b) Consumption of Raw Materials |
2492.400 |
2740.700 |
7660.600 |
|
|
(c) Traded Goods Purchases |
2503.600 |
1079.000 |
4054.300 |
|
|
(d) Employee Cost |
341.300 |
365.000 |
1071.300 |
|
|
(e) Depreciation |
219.300 |
196.100 |
606.000 |
|
|
(f) Other Expenditure |
747.000 |
680.800 |
1998.300 |
|
|
|
Total |
5235.500 |
4989.200 |
14025.200 |
|
3 |
Profit from Operations before Other Income, Interest & Exceptional
Items (1-2) |
779.400 |
782.700 |
2500.300 |
|
4 |
Other Income |
|
|
|
|
-
Dividend from Subsidiary |
0.000 |
30.000 |
30.000 |
|
|
-
Others |
71.900 |
88.600 |
228.300 |
|
|
5 |
Profit before Interest & Exceptional Items (3+4) |
851.300 |
901.300 |
2758.600 |
|
6 |
Less: Interest |
222.300 |
149.500 |
498.800 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
629.000 |
751.800 |
2259.800 |
|
8 |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit from Ordinary Activities before tax (7+8) |
629.000 |
751.800 |
2259.800 |
|
10 |
Tax Expense (Net off reversal of earlier year's provision of Rs.65.500
Millions; Previous Year - Nil) |
132.500 |
212.800 |
584.900 |
|
11 |
Net Profit from Ordinary Activities after Tax (9-10) |
496.500 |
5390.000 |
1674.900 |
|
12 |
Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit for the Period (11-12) |
496.500 |
539.000 |
1674.900 |
|
14 |
Paid-up Equity Share Capital (Face Value of Rs.10/- each) |
882.000 |
882.000 |
882.000 |
|
15 |
Paid-up Debt Capital (Listed Debentures) |
3250.000 |
3250.000 |
3250.000 |
|
16 |
Reserves excluding Revaluation Reserves |
0.000 |
0.000 |
0.000 |
|
17 |
Debenture Redemption Reserve |
395.900 |
395.900 |
3954.900 |
|
18 |
Earnings Per Share (EPS) (in Rs.) (Rs. in Millions) |
|
|
|
|
(a)
Basic and diluted EPS (before Extraordinary
items) |
5.63 * |
6.11 * |
18.99 * |
|
|
(b)
Basic and diluted EPS (after Extraordinary
items)) |
5.63 * |
6.11 * |
18.99 * |
|
|
19 |
Public Shareholding |
|
|
|
|
-
Number of Shares |
49993486 |
49993642 |
49993486 |
|
|
-
Percentage of Shareholding |
56.68 |
56.68 |
56.68 |
|
|
20 |
Promoters and Promoter Group Shareholding |
|
|
|
|
(a) Pledged/ Encumbered |
|
|
|
|
|
-
Number of
Shares |
-- |
-- |
-- |
|
|
-
Percentage of Shares (as a % of the total
Shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
-
Percentage of Shares (as a % of the total Share
Capital of the Company) |
-- |
-- |
-- |
|
|
|
(b) Non-Encumbered |
|
|
|
|
-
Number of
Shares |
38211457 |
38211301 |
38211457 |
|
|
-
Percentage of Shares (as a % of the total Shareholding
of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
-
Percentage of Shares (as a % of the total Share
Capital of the Company) |
43.32 |
43.32 |
43.32 |
|
* Non Annualised
Notes:
1)
In the quarter under consideration, the
Company has acquired additional equity shares of an associate company Yerrowda
Investments Limited by virtue of which it has become the Subsidiary under the
Companies Act, 1956. These shares represent perpetual occupancy rights in the
immovable properties owned by the said company, the cost of acquisition thereof
is treated as part of fixed assets.
2)
Previous period's figures have been
reclassified wherever necessary to conform to current period's classification.
3)
There was no investor complaint pending
at the beginning of the quarter. The Company, during the quarter, has received
two complaints and the same have been resolved.
4)
The above unaudited financial results
for the quarter ended 31st December, 2011 have been subjected to a limited
review by the statutory auditors of the Company.
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
||
|
(Unaudited) |
||||
|
|
|
|
|
|
|
1 |
Segment Revenue |
|
|
|
|
(a) Chemicals |
|
|
|
|
|
Manufactured |
3383.300 |
3586.700 |
10897.100 |
|
|
Traded |
21.600 |
0.000 |
21.600 |
|
|
|
Total |
3404.900 |
3586.700 |
10318.700 |
|
(b) Fertilisers |
|
|
|
|
|
Manufactured |
1246.400 |
1124.600 |
3226.300 |
|
|
Traded |
1517.500 |
1182.400 |
3319.000 |
|
|
|
Total |
2763.900 |
2307.000 |
6545.300 |
|
(c) Realty |
12.600 |
18.800 |
49.200 |
|
|
(d) Others |
2.700 |
31.400 |
65.900 |
|
|
|
Total |
6184.100 |
5943.900 |
16979.100 |
|
Less :Inter-Segment Revenue |
169.200 |
172.000 |
453.600 |
|
|
2 |
Net Sales/Income from Operations |
6014.900 |
5771.900 |
16525.500 |
|
Segment profit / (loss) before tax and interest from |
|
|
|
|
|
(a) Chemicals |
815.900 |
848.600 |
2609.400 |
|
|
(b) Fertilisers |
286.500 |
274.400 |
787.200 |
|
|
(c) Realty |
(38.300) |
(34.600) |
(114.900) |
|
|
(d) Others |
(6.600) |
20.900 |
36.500 |
|
|
|
Total |
1057.500 |
1109.300 |
3318.200 |
|
Less: i) Interest |
222.300 |
149.500 |
498.800 |
|
|
ii) Other unallocable expenditure net of unallocable income |
206.200 |
208.000 |
559.600 |
|
|
3 |
Total Profit Before Tax from Ordinary Activities |
629.000 |
751.800 |
2259.800 |
|
Capital Employed |
|
|
|
|
|
(a) Chemicals |
11587.200 |
11740.500 |
11587.200 |
|
|
(b) Fertilisers |
2861.900 |
2129.700 |
2861.900 |
|
|
(c) Realty |
2478.400 |
2431.100 |
2478.400 |
|
|
(d) Others |
383.000 |
410.300 |
383.000 |
|
|
(e) Unallocated |
5086.900 |
3535.800 |
5086.900 |
|
|
|
Total |
22397.400 |
20247.400 |
22397.400 |
DETAILS OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
||
|
(Unaudited) |
||||
|
|
|
|
|
|
|
1 |
Shareholders' Funds |
|
|
|
|
(a) Capital |
882.000 |
882.000 |
882.000 |
|
|
(b) Reserves and Surplus |
11452.700 |
10956.900 |
11452.700 |
|
|
2 |
Loan Funds |
9119.400 |
7508.600 |
9119.400 |
|
3 |
Deferred Tax Liability |
943.300 |
899.900 |
943.300 |
|
|
Total |
22397.400 |
20247.400 |
22397.400 |
|
4 |
Fixed Assets (net of accumulated depreciation) |
12704.500 |
11802.700 |
12704.500 |
|
5 |
Capital Work-in-Progress |
1525.900 |
1338.900 |
1525.900 |
|
6 |
Investments |
2082.600 |
1931.300 |
2082.600 |
|
7 |
Current Assets, Loans And Advances |
|
|
|
|
(a) Interest Accrued on Deposits |
48.300 |
30.500 |
48.3000 |
|
|
(b) Inventories |
3080.000 |
2495.900 |
3080.000 |
|
|
(c ) Sundry Debtors |
3753.500 |
3579.100 |
3753.500 |
|
|
(d) Cash and Bank Balances |
1430.200 |
1016.500 |
1430.200 |
|
|
(e) Loans and Advances |
969.500 |
1397.100 |
969.500 |
|
|
|
|
9281.500 |
8519.100 |
9281.500 |
|
8 |
Less: Current Liabilities and Provisions |
|
|
|
|
(a) Liabilities |
2973.600 |
3038.300 |
2973.600 |
|
|
(b) Provisions |
223.500 |
306.300 |
223.500 |
|
|
|
|
3197.100 |
3344.600 |
3197.100 |
|
|
Net Current Assets |
6084.400 |
5174.500 |
6084.400 |
|
|
Total |
22397.400 |
20247.400 |
22397.400 |
Fixed Assets
- Land freehold
- Land leasehold
- Buildings
- Plant and machinery
- Electrical installation and fittings
- Furniture and fixtures
- Office equipments
- Vehicles
Its’ products range includes :-
- Ammonia
- Methanol
- Dulute Nitric Acid (DBA)
- Concentrated Nitric Acid (CAN)
- Liquid Carbon-di-oxide (CO2)
- LDAN
- Nitro Phosphate (NP)
- MOP
- DAP
- Ammonium Sulphate
- Mixtures
- Urea Seeds
- Micronutrients
- SSF
- Traded Bulk Fertilisers
- Traded
Speciality Agro Products
PRESS RELEASE:
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LTD. RECORDS 60%
INCREASE IN REVENUES Q3 2011-12
• Total Revenues up 45% for nine months ended
December 31, 2011
• PBT up 20% for nine months under review
• PAT up 25% for nine months under review
• Own manufactured Fertilisers business shows
strong growth of 155% for Q3 FY 12 on Y-on-Y basis
• Sales for Chemicals business up 29% for the
Quarter on Y-on-Y basis
Mumbai / Pune, Thursday, January 25, 2012: Deepak
Fertilisers And Petrochemicals Corporation Limited (DFPCL) today announced that
for the quarter ended December 31, 2011, Total Revenues had grown 60% to Rs. 6014.900 Millions from Rs.
3750.300 Millions from Q3, 2010-11. This was driven by the strong increase in
both own manufactured Fertilisers and Chemicals.
Operating EBIDTA was up 22% to Rs. 998.700
Millions for the quarter ended December 31, 2011 against Rs. 818.900 Millions
for the corresponding quarter in the previous year. For the same period, the
Company’s Profit Before Tax (PBT) rose
10% to Rs. 629.000 Millions against Rs. 569.700 Millions for the previous
corresponding year (Q3 FY11). Profitability was impacted adversely to the
extent of Rs. 220.000 Millions by rupee depreciation. Profit after Tax rose 23%
to Rs. 496.500 Millions against Rs. 402.600 Millions in the corresponding
period of the previous year.
Own manufactured Fertilisers recorded 155%
growth from Rs. 487.900 Millions in Q3, FY11 to Rs. 1246.400 Millions in Q3 FY
12, aided by improved phos acid availability. The overall Fertilisers
business,including outsourced Fertilisers, grew 130% from Rs. 1202.700 Millions
in Q3 FY11 to Rs. 2764.000 Millions in Q3 FY12. The specialty fertilisers
business, which includes water solubles, bio-fertilisers, micro nutrients,
etc., also grew 25% for Q3 FY12 over Q3 FY11. The sales of Fruits and
Vegetables grew 128%.
The higher capacity utilisation, coupled with
stronger operations and cost management and
good margins on specialityfertilisers, has led to better profitability
in this segment. Profits in the Fertilisers business grew to Rs. 286.500
Millions in Q3 FY 12 from Rs. 42.500 Millions in Q3 FY 11.
The Company’s Chemicals business grew 29% from
Rs. 2629.600 Millions in Q3 FY11 to Rs. 3404.900 Millions in Q3 FY12. Growth in
the Chemicals business was driven both by higher volumes in Technical Ammonium
Nitrate and improved realisations. Due to an abnormal increase in ammonia
prices segment profitability for the Chemicals business grew only marginally to
Rs. 815.900 Millions in Q3 FY 12 against Rs. 799.200 Millions in Q3 FY11,
mainly.
For the nine months ended December 31, 2011
Total Revenues stood at Rs 16525.500 Millions against Rs. 11363.400 Millions
for the same period in the previous year—an increase of 45%. Profit Before Tax
for the first nine months of FY 12 stood at Rs. 2259.800 Millions against Rs.
1879.100 Millions for the corresponding period in the previous financial
year—an increase of 20%. Profit After Tax rose 25% to Rs. 1674.900 Millions for
the nine months ended December 31, 2011 from Rs. 1339.000 Millions for the
corresponding period in the previous financial year. Commenting on the results,
Mr. Sailesh Mehta, Vice Chairman and Managing Director, said,
“Our growth in the own-manufactured
fertilisers business should propel us to move forward strongly in this sector.
We will steadily improve capacity utilisations in TAN over the coming quarters
and consolidate market share“.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.79 |
|
|
1 |
Rs.85.17 |
|
Euro |
1 |
Rs.65.53 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.