MIRA
INFORM REPORT
|
Report Date : |
29.06.2012 |
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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|
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Date of Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-021360 |
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|
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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 : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers,
Chemical Fertilisers containing Nitrates and Phosphates (Nitrophosphates /
Ammonium Nitrate Phosphate), Organic Chemicals, Acrylic Alcohols, Methyl
Alcohol and Ammonium Nitrate. |
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|
|
|
No. of
Employees: |
Approximately 7000 |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 an old and well established reputed company having good track records.
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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
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
|
|
Website : |
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|
Factory : |
Plot
No. K-1, MIDC Industrial Area, Taloja, A. V. – 410 208, District Raigad, |
|
Tel. No.: |
91-22-67684000 |
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Fax No.: |
91-22-27412413 |
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E Mail: |
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|
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|
Factory 2 : |
Plot
No. 32, Sector 16, Opposite Modern College, Vashi, Navi Mumbai-400703,
Maharashtra, India |
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Branch Office
: |
Located at: ·
Delhi Office |
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E-Mail: |
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. C. K. Mehta |
|
Designation : |
Chairman |
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Qualification : |
Undergraduate |
|
Date of Appointment : |
31.05.1979 |
|
Other
Directorships :- |
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|
|
|
|
Name : |
Mr. S. C. Mehta |
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Designation : |
Vice
Chairman and Managing Director |
|
Qualification : |
B.
Com., M.B.A. ( |
|
Date of Appointment : |
04.09.1985 |
|
Other
Directorships :- |
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|
|
|
|
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 |
|
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. |
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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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|
|
|
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 |
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 |
|
|
28975 |
0.03 |
|
|
1302744 |
1.48 |
|
|
11974529 |
13.58 |
|
|
20487081 |
23.22 |
|
|
|
|
|
|
5950458 |
6.75 |
|
|
|
|
|
|
18038262 |
20.45 |
|
|
2944062 |
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 : |
Manufacturing
of Ammonia, Methanol, Nitric Acids (in various concentrations), Low Density
Prilled Ammonium Nitrate (Explosive Grade) and Nitrophosphate Fertilisers,
Chemical Fertilisers containing Nitrates and Phosphates (Nitrophosphates/Ammonium Nitrate
Phosphate), Organic Chemicals, Acrylic Alcohols, Methyl Alcohol and Ammonium
Nitrate. |
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Products : |
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Brand Names : |
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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 : |
Approximately 7000 |
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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 : |
Mumbai,
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Solicitors: |
|
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|
|
|
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 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
4738.700 |
5771.900 |
6014.900 |
6902.600 |
|
Total Expenditure |
3609.900 |
4793.100 |
5016.200 |
6000.900 |
|
PBIDT (Excl OI) |
1128.800 |
978.800 |
998.700 |
901.700 |
|
Other Income |
67.800 |
118.600 |
71.900 |
135.500 |
|
Operating Profit |
1196.600 |
1097.400 |
1070.600 |
1037.200 |
|
Interest |
127.000 |
149.500 |
222.300 |
183.500 |
|
PBDT |
1069.600 |
947.900 |
848.30 |
853.700 |
|
Depreciation |
190.600 |
196.100 |
219.300 |
213.100 |
|
Profit Before Tax |
879.000 |
751.800 |
629.000 |
640.700 |
|
Tax |
239.600 |
212.800 |
132.500 |
185.900 |
|
Profit After Tax |
639.400 |
539.000 |
496.500 |
454.800 |
|
Net Profit |
639.400 |
539.000 |
496.500 |
454.800 |
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 |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
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 |
No |
|
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 |
No |
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.
STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED
31.03.2012
(Rs. In Millions)
|
Sr. No. |
Particulars |
Standalone Results |
||
|
3 months ended |
Year Ended |
|||
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
||
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
|
|
1. |
Income from Operations |
|
|
|
|
a) Net Sales/income from operation (Net of excise duty) |
6887.400 |
5986.700 |
23337.100 |
|
|
(b) Other Income from Operations (incl. realty income) |
15.200 |
28.200 |
91.000 |
|
|
Total Income from Operations (net) |
6902.600 |
6014.900 |
23428.100 |
|
|
2. |
Expenses |
|
|
|
|
a) Cost of materials consumed |
3490.600 |
2549.400 |
11347.100 |
|
|
b) Purchases of stock-in-trade |
338.000 |
2503.600 |
4392.300 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
1071.800 |
(1068.100) |
(293.500) |
|
|
d) Employee benefits expense |
321.900 |
341.300 |
1393.200 |
|
|
e) Depreciation and amortisation expense |
213.100 |
219.300 |
819.100 |
|
|
f) Other expenses |
778.600 |
690.000 |
2580.900 |
|
|
|
Total expenses |
6213.900 |
5235.500 |
20239.100 |
|
3. |
Profit/(Loss) from Operations before Other Income, finance costs & exceptional Items (1-2) |
688.700 |
779.400 |
3189.000 |
|
4. |
Other Income |
135.500 |
71.900 |
393.800 |
|
5. |
Profit/(Loss) from ordinary activities before finance costs and exceptional items (3+4) |
824.200 |
851.300 |
3582.800 |
|
6. |
Finance costs |
183.500 |
222.300 |
682.200 |
|
7. |
Profit/ Loss from ordinary activities after finance costs but before exceptional Items (5-6) |
640.700 |
629.100 |
2900.600 |
|
8. |
Exceptional items ( Note 1) |
|
|
|
|
9. |
Profit/ (Loss) from ordinary activities before tax (7-8) |
640.700 |
629.100 |
2900.600 |
|
10. |
Tax expense (Refer note 2) |
185.900 |
132.500 |
770.800 |
|
11. |
Net Profit/(Loss)from ordinary activities after tax(9-10) |
454.800 |
496.600 |
2129.700 |
|
12. |
Extraordinary items (net of tax expense Rs. nil ) |
|
|
|
|
13. |
Net Profit / (Loss) for the period (11+12) |
454.800 |
496.600 |
2129.700 |
|
14 |
Share of profit / (loss) of associates |
|
|
|
|
15. |
Minority interest |
|
|
|
|
16. |
Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (13+14+15) |
454.800 |
496.600 |
2129.700 |
|
17. |
Paid-up Equity Share Capital (Face Value of Rs.10/- each) |
882.000 |
882.000 |
882.000 |
|
18. |
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year |
10777.800 |
11056.700 |
10777.800 |
|
19.i |
Earnings Per Share (EPS) (before Extraordinary items) of Rs. each (not annualized) |
|
|
|
|
|
a) Basic |
5.16 |
5.63 |
24.15 |
|
|
b) Diluted |
5.16 |
5.63 |
24.15 |
|
19.ii |
Earnings Per Share (EPS) (after Extraordinary items) of Rs. each (not annualized) |
|
|
|
|
|
a) Basic |
5.16 |
5.63 |
24.15 |
|
|
b) Diluted |
5.16 |
5.63 |
24.15 |
|
20. |
Debt Equity Ratio |
0.60 |
0.59 |
0.60 |
|
21. |
Debt Service Coverage Ratio |
4.53 |
4.00 |
3.76 |
|
22. |
Interest Service Coverage Ratio |
5.65 |
4.82 |
6.45 |
|
|
|
|
|
|
|
A. |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
49,993,486 |
49,993,486 |
49,993,486 |
|
|
- Percentage of Shareholding |
56.68 |
56.68 |
56.68 |
|
|
|
|
|
|
|
2. |
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 |
38,211,457 |
38,211,457 |
38,211,457 |
|
|
- 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 |
|
|
Particulars |
31.03.2012 |
|
B. |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
0 |
Notes:
1 Exceptional items for the previous year represent
Rs.33.809 Millions being cost of assets restructured in the real estate
business.
2 Based on completion of assessment proceedings of the past
years, excess provision for tax amounting to Rs. 65.500 Millions was reversed
during quarter ended December, 2011.
3 Ratios have been computed as follows:
a) Debt Equity Ratio= (Aggregate of Long Term Debts and
Deferred Tax Liability) / (Shareholders Funds less Misc. Expenditure to the
extent not written off).
b) DSCR= (Earnings before Interest, Depreciation and Tax)/
(Long Term Loan principal repaid+ Interest Expenses).
c) ISCR= (Earnings before Interest, Depreciation and Tax)/
(Interest Expenses).
4 The Board of Directors has recommended dividend of 55 %
i.e. Rs. 5.50 (Previous Year Rs. 5.00) per share on Equity Shares (face value
of Rs.10/- each) of the Company for the year ended 31st March, 2012
The above audited results were reviewed by the Audit Committee. The Board of Directors at its meeting held on 18th May, 2012 approved the same.
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Sr. No. |
Particulars |
Standalone Results |
||
|
3 months ended |
Year Ended |
|||
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
||
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
Segment Revenue |
|
|
|
|
|
a) Chemicals |
|
|
|
|
|
Manufactured |
3889.300 |
3383.300 |
14186.400 |
|
|
Traded |
96.900 |
21.600 |
118.500 |
|
|
Total |
3986.200 |
3404.900 |
14304.900 |
|
|
b) Fertilisers |
|
|
|
|
|
Manufactured |
1695.700 |
1246.400 |
4922.000 |
|
|
Traded |
1454.000 |
1517.500 |
4773.000 |
|
|
Total |
3149.700 |
2763.900 |
9695.000 |
|
|
c) Realty |
18.800 |
12.600 |
68.000 |
|
|
d) Others |
2.800 |
2.700 |
68.700 |
|
|
Total |
7157.500 |
6184.100 |
24136.600 |
|
|
Less :Inter Segment Revenue |
254.900 |
169.200 |
708.500 |
|
|
Net Sales/Income from Operation |
6902.600 |
6014.900 |
23428.100 |
|
2. |
Segment profit / (loss) before tax interest |
|
|
|
|
|
from ordinary Activities |
|
|
|
|
|
a) Chemicals |
649.900 |
815.900 |
3259.300 |
|
|
b) Fertilisers |
347.300 |
286.500 |
1134.500 |
|
|
c) Realty |
(35.400) |
(38.300) |
(150.300) |
|
|
d) Others |
(6.700) |
(6.600) |
29.800 |
|
|
Total |
955.100 |
1057.500 |
4273.300 |
|
|
Less: i) Interest |
183.500 |
222.300 |
682.200 |
|
|
ii) Other unallocable expenditure net of unallocable income |
130.900 |
206.100 |
690.500 |
|
3. |
Total Profit Before Tax from Ordinary Activities |
640.700 |
629.100 |
2900.600 |
|
|
Capital Employed |
|
|
|
|
|
a) Chemicals |
11984.200 |
11587.200 |
11984.200 |
|
|
b) Fertilisers |
3856.300 |
2861.900 |
3856.300 |
|
|
c) Realty |
2581.700 |
2478400 |
2581.700 |
|
|
d) Others |
377.200 |
383.000 |
377.200 |
|
|
e) Unallocated |
3414.700 |
5086.900 |
3414.700 |
|
|
Total |
22214.000 |
22397.400 |
22214.000 |
Standalone statement of Assets and Liabilities
(Rs. In Millions)
|
Sr. No. |
Particulars |
31.03.2012 |
|
|
|
|
|
A. |
EQUITY AND
LIABILITIES |
|
|
1. |
Shareholder's funds |
|
|
|
(a) Share Capital |
882.000 |
|
|
(b) Reserves and Surplus |
11353.000 |
|
|
Sub total-
Shareholder's funds |
12235.000 |
|
2. |
Minority interest |
|
|
3. |
Non-current
liabilities |
|
|
|
(a) Long term borrowings |
5098.400 |
|
|
(b) Deferred tax liabilities (net) |
1012.500 |
|
|
(c) Long-term provisions |
143.100 |
|
|
Sub-total - Non-current liabilities |
6254.000 |
|
4. |
Current liabilities |
|
|
|
(a) Short-term borrowings |
2694.200 |
|
|
(b) Trade payables |
1776.200 |
|
|
(c) Other current liabilities |
2527.600 |
|
|
(d) Short-term provisions |
615.600 |
|
|
Sub-total - Current
liabilities |
7613.600 |
|
|
TOTAL - EQUITY AND
LIABILITIES |
26102.600 |
|
|
|
|
|
B. |
ASSETS |
|
|
1. |
Non-current assets |
|
|
|
(a) Fixed assets |
14273.700 |
|
|
(b) Non-current investments |
976.400 |
|
|
(c) Long-term loans and advances |
284.200 |
|
|
(d) Other non current assets |
0.000 |
|
2. |
Sub-total -
Non-current assets |
15534.300 |
|
|
Current assets |
|
|
|
(a) Current investments |
212.000 |
|
|
(b) Inventories |
2067.100 |
|
|
(c) Trade receivables |
5553.800 |
|
|
(d) Cash and cash equivalents |
1456.900 |
|
|
(e) Short-term loans and advances |
1242.800 |
|
|
(f) Other current assets |
35.700 |
|
|
Sub-total - Current
assets |
10568.300 |
|
|
TOTAL - ASSETS |
26102.600 |
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
AS PER
WEBSITE
The genesis of
Deepak Subject could be said to be in the year 1970 when Mr. C. K. Mehta set up
Deepak Nitrite Ltd, combining his skills in trading and manufacturing. DNL grew
by leaps and bounds, surpassing expectations of all investors and also won many
prestigious awards like the Sir P.C.Ray award, for being the best Chemical
Industrial unit in
In 1983, Subject
started commercial production of ammonia (in technical collaboration with Fish
International Engineers (USA) using natural gas as feedstock. This marked the
fulfillment of a need for lateral integration into the world of basic building
block chemicals, premium fertilisers and petrochemicals. At the time, this was
The company
undertook major expansion and diversification in 1989 to achieve forward
integration of ammonia and diversification in Methanol.
In July 1992,
Subject commenced commercial production of Low Density Ammonium Nitrate (LDAN),
Nitro Phosphate (NP), Dilute Nitric Acid (DNA), and Concentrated Nitric Acid
(CNA).
This has resulted in
a multi-product portfolio for Subject consisting of chemicals, petrochemicals,
fertilisers and other agri-inputs. To ensure an uninterrupted supply of natural
gas to its plant, Subject laid its own 43 km gas pipeline from the coastal fall
point of Bombay High to its plants in Tajola, thus becoming one of the first
companies in
The Company has now
diversified into specialty retailing with
Subject has a
chemical storage terminal at Jawarharlal Nehru Port Trust (JNPT) to provide
support to its logistics management system and ensure a window to the world
trade in chemicals. It is in the process of adding new storage facilities for
Ammonia, Methanol and other products. The company also leases port storage
capacities at Bombay Port Trust and
DFPCL's business can
be broadly categorised into : -
- Chemicals
- Agribusiness
- Specialty Retailing
Chemicals: This division of Subject manufactures
Methanol, various grades of Nitric Acid and Ammonia. Subject is one of the
largest producers of Methanol in
(See presentation on
Chemicals related products of Subject)
Agribusiness : This division of Subject manufactures 23:23:0
prilled Nitrophosphate fertiliser under the brand name Mahadhan. Subject
markets Mahadhan through a network of over 1000 dealers. Thanks to the
company's rigorous adherence to quality, Mahadhan is one of most widely
accepted fertiliser brands in
(See presentation on
Agriculture related products of Subject)
Specialty
Retailing:
Ishanya: Ishanya is
For architects and
interior designers, Ishanya is a platform to showcase their art, craft and
vision to a targeted and discerning audience.
For manufacturers
and retailers of interior and exterior products, it's the perfect marketplace
to make the most of
Social
Responsibilities: The
Company has been contributing towards social causes for nearly two decades. The
Deepak Charitable Trust (DCT) and the Deepak Medical Foundation (DMF) with the
support of Subject and Deepak Nitrite Limited are carrying on development
activities for society.
DCT has been
actively working in the area of mother and childcare. Through an integrated
network of women health workers the foundation has been imparting training and
communication on health care. Extending the activities on both sides, the
Foundation has catalysed and supported the creation of Aanganwadis, and taken
education to youth on family planning. The Foundation is now working to curtail
the spread of HIV / AIDS.
Subject takes an
active interest in environmental protection. In addition to regulatory
requirements of the State Pollution Boards and Federation of Indian Industries,
care is taken to reduce pollution by incorporation of appropriate effluent
handling disposal systems.
Ishanya Foundation
The Ishanya
Foundation is focused on ‘Women Empowerment’, ‘Education’ and ‘Health’. As its
maiden project, the foundation started a Diabetic Centre at the Jehangir
hospital, Pune. The Ishanya Foundation Diabetic Centre is equipped with
advanced machines like Biothesiometer, Hand Doppler, and the RS Scan (foot
mapping machine). The centre offers a preventive, curative and research effort
on diabetes. In its outreach programme, a number of diabetic camps and cataract
operations were conducted free of cost for the needy.
The Ishanya
Foundation serves 27 villages around Taloja by offering free OPD check-up by a
team of doctors, trained medical and paramedical staff. It has started self
help groups to enable women save money and put it to right use, thereby gaining
recognition and respect in the society. Mobile libraries have been started in
three schools in Taloja and joyful activities are carried out for these
children.
In there plants they
continuously monitor solid, semisolid and gaseous affluent discharges to ensure
that they are within allowable limits. They also help other small industries as
well as customers in solving their environment- related problems.
Future Prospects: Subject will continue to make deeper inroads
into value-added chemicals, agro inputs and related services and specialty
retailing.
Subject plans to
leverage its well-knit marketing and distribution network in chemicals and
fertiliser industry to provide value-added services to their customers for
sourcing raw materials and assisting them in exporting their products. The
chemical storage and drumming facilities at Jawaharlal Nehru Port (JNPT) near
They are now executing
two projects—an Ammonia storage facility at JNPT and a 300 MTPA AN
manufacturing facility at Paradip in Orissa on the East Coast of India
Deeper in-roads into
agro-inputs and services markets are on the drawing board, including the
MAHADHAN Agriculture Research Centre (MARC), which will serve to partner with
farmers, providing education, training and ensuring that they achieve the best
performance. The Mahadhan Saarrthie initiative is being quickly expanded across
Dreams of visionary
minds and planned strategy by professional managers will give shape to an
exciting future at DFPCL
People
(As of August 2009)
Subject is managed by a Board of Directors, with significant representation of
independent (and highly regarded) experts, who bring with them a multi-faceted
storehouse of knowledge and expertise. This ensures transparency, governance
and high quality inputs for the company.
A well known Industrialist, having 50 years of versatile experience in the
Chemical Trade and Industry, and the founder of Deepak Nitrite Limited and
Deepak Fertilisers And Petrochemicals Corporation Limited. He has been managing
both the Companies successfully for the last 31 years.
S. C.
Mehta, Vice Chairman and Managing Director
A young Industrialist graduated in Management from
R. A.
Shah, Non-Executive Director
Solicitor and Senior Partner of M/s. Crawford Bayley and Company, a well known
firm of solicitors in Mumbai, having rich and vast experience in the field of
Corporate Laws and Corporate Governance.
D.
Basu, Non-Executive Director
Former Chairman of State Bank of
N. C.
Singhal, Non-Executive Director
Former-Managing Director of SCICI, Financial Expert and has vast experience in
the field of Banking and Finance.
U. P.
Jhaveri, Non-Executive Director
A Chemical Engineer by qualification has rich experience of more than 31 years
in project management, plant operation, optimisation, reliability productivity
improvement etc. in Gujarat State Fertilizer Company Limited and Gujarat
Narmada Valley Fertilizer Company Limited
S. R.
Wadhwa, Non-Executive Director
He was Former Chief Commissioner of Income-Tax, Chairman Income-Tax Settlement
Commission as well as Director, Ministry of Finance CBDT. An MA, LLM, CAIIB by
qualification has rich background in the field of finance / tax. He is a Tax
Management Consultant and an advocate practicing in taxation at
Smt. Parul Mehta, Non-Executive Director
Smt. Parul S. Mehta has made notable contributions over the last few years in
the areas of corporate public relations and more currently in the Landscape
design, FandB, Convention Centre and Arts block of Ishanya, the Company’s
Speciality Mall project. Additionally, she runs the Ishanya Foundation.
She has very actively taken up the social welfare activities of the Company key
among which are, the upliftment of the village community near Taloja and a Diabetic
Care Centre in Pune.
S.
Rama Iyer, Non–Executive Director
A Chemical Engineer with M.Tech and Ph.D having vast hands-on experience of
four decades and knowledge in the areas of process technology, design
engineering, project management and construction management of large projects
both in India and abroad. He was Executive Chairman of Aker Kvaerner Powergas
Private Limited
Shri
Anil Sachdev, Non-Executive Director
Began his career with Tata Motors and was associated with Eicher group. He is
the founder and Chief Executive Officer of Grow Talent Company Limited, which
grew to have over 100 consultants. Besides being a consultant for many top
global firms, he is active in management circles and has held several publi
offices viz., Chairman of National Committee on Industrial Relations and
Regional Committee on Human Resource Development of Confederation of Indian
Industry. He was also the President of the National HR Network of
PRESS RELEASE:
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LTD TO INVEST RS.4150.000 MILLIONS
IN GREENFIELD AND BROWNFIELD FERTILISER PROJECTS
·
Brownfield
capacity expansion to take NP fertilisers from 2,29,000 MTPA to 6,00,000 MTPA
·
Company to gain
flexibility to produce all NP / NPK grades, with fortification of micro-nutrients
·
32,000 MTPA
Greenfield Bentonite Sulphur plant to be set up at Panipat – Haryana
·
Company also
announced Q4 and Annual financial results for FY 2011-12
-
Declares dividend
of 55%
-
Income from
Operations for FY 12 grew by 50%
-
PBT and PAT for FY
12 up 11% and 14 % respectively
-
Sales for
Agri-Business up by 82%
Mumbai / Pune,
Friday, May 18th 2012: Deepak Fertilisers And Petrochemicals Corporation
Limited (DFPCL), among India’s key producers of bulk and specialty fertilisers
and industrial chemicals, today announced a project that will more than double
the capacity at its integrated fertiliser complex at Taloja, Maharashtra. The
Company proposes to invest around Rs. 3600.000 Millions in the proposed project
that will enhance the capacity of its NPK grades complex fertilisers from the
current 2,29,000 MT pa to 6,00,000 MT pa. The Company also announced a
Greenfield Bentonite Sulphur project to be set up at a cost of Rs. 550.000
Millions near Panipat, Haryana. Both projects are expected to be completed in a
30-months timeframe from commencement.
The primary objective of the NPK capacity augmentation exercise is to
enhance the Company’s product grades from Single Grade Prilled 24:24:0 Nitro
Phosphate (NP) fertilisers to Multi Grade NPK Granulated fertilisers. The
execution of this project will enable the Company to gain the flexibility to
produce all NP / NPK grades with additional fortification of micro-nutrients as
per the seasonal crop requirements. With this capacity augmentation project
being undertaken by DFPCL, the region of Western India will now move towards
self-sufficiency in NPK fertilisers. This project will also help considerably
enhance soil and crop productivity in the region and improve overall soil
health. The Bentonite Sulphur project will help compensate the widespread
micronutrient deficiency reported in Indian soils. For soils that are saturated
with fertilisers such as urea, sulphur based fertilisers will definitely
increase the soil quality and the yield.
Commenting on this expansion, Mr. Sailesh C Mehta, Vice Chairman and
Managing Director of DFPCL, said, “In our overall analysis of the agricultural
sector we’ve assessed a strong demand for increased availability of NPK grades.
NPK fertilisers are a primary source for enhancing soil and crop productivity,
and an essential input for all major crops – in Maharashtra it is used across
farm outputs such as sugar, and all important vegetables and fruits. Given the
growing concern over India’s declining fertiliser response ratio and the need for
balanced fertiliser use, we have decided to expand and more than double our NPK
capacity to 6,00,000 MT pa. We believe this project will significantly benefit
farmers in western India and also aid us in significantly enhancing our market
share in fertilisers and gain increased competitive advantage”
DFPCL also announced its financial results for the quarter ended March
31st 2012 (Q4 – FY 12), and for the year ended March 31st 2012 (FY 12).
For the financial year FY 2011-12, the Company’s Total income from
operations grew by 50% to Rs. 23428.100 Millions as against Rs. 15648.100
Millions in the previous year. The Profit Before tax stood at Rs. 2900.600
Millions as against Rs. 2610.500 Millions in the previous year; an increase of
11% and Profit After Tax rose 14% to Rs. 2129.700 Millions in FY 12 as against
Rs. 1866.200 Millions in FY 11.The Company has declared a dividend of 55%
Segment revenues for Agri-business grew by 82% to Rs. 9695.000 Millions
in FY 12 against Rs. 5311.800 Millions in the previous year, while revenues for
Chemicals business were recorded at Rs. 14304.900 Millions as against Rs.
10759.400 Millions in FY 11. Segment profitability for Agri-business increased
260% at Rs. 1134.500 Millions for FY12 as against Rs. 316.400 Millions in the
previous financial year. Segment profitability for Chemicals business stood at
Rs. 3259.300 Millions in FY 12 as compared to Rs. 3194.600 Millions in FY 11.
During the year FY 2011-12, the Company also achieved enhanced capacity
utilization at its fertilizer plant. For FY 12, the sales for the Company’s
nitro-phosphates grew by 100% and other specialty fertilisers sales recorded a
23% rise. The Company also achieved full capacity utilization at its Iso Propyl
Alcohol plant.
Profitability for FY 12 was also impacted adversely to the extent of Rs.
170.000 Millions by rupee depreciation and by Rs. 60.000 Millions on account of
some planned shutdowns taken in Q4.
For the quarter ended March 31st 2012, the Company posted total Income
from Operations at Rs. 6902.600 Millions as compared to Rs. 4284.700 Millions
for the corresponding quarter last year a growth of 61%. Profit Before Tax and
Profit After Tax was recorded at Rs. 640.700 Millions and Rs. 454.800 Millions
respectively, as against Rs. 731.500 Millions and Rs. 527.200 Millions in the
corresponding quarter last financial year. Profitability for the quarter was
impacted due to a steep increase in raw material costs, coupled with a time lag
in finished produce price adjustment and some planned plant shutdowns.
Segment revenues for the quarter from Agri-business and Chemicals
business stood at Rs. 3149.700 Millions and Rs. 3986.200 Millions respectively
as against Rs. 929.200 Millions and Rs. 3471.800 Millions in the corresponding
quarter last year. Segment profitability from Agri-business and Chemicals
business stood at Rs. 347.300 Millions and Rs. 649.900 Millions respectively,
as against Rs. 6.900 Millions and Rs. 1003.100 Millions in the corresponding
quarter last year.
Over the last year, the Company’s fertilisers and agri-business has made
significant efforts in reaching out to larger geographies in India by targeting
markets in Punjab, Haryana, Uttar Pradesh and parts of Madhya Pradesh. The
Company has been able to make considerable in-roads into these markets and is
today a recognizable brand name in northern India.
DEEPAK
FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED 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.56.92 |
|
|
1 |
Rs.88.91 |
|
Euro |
1 |
Rs.71.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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.