Deepak Fertilisers and Petrochemicals Corporation reported a strong performance for the September quarter, with consolidated net profit rising 85% year-on-year, supported by robust growth in operating earnings and a significant expansion in margins.
The company's consolidated net profit climbed to Rs 394 crore in the second quarter, compared with Rs 213 crore in the corresponding period last year.
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Revenue from operations increased 10.9% to Rs 3,334 crore during the quarter, against Rs 3,006 crore reported in the year-ago period, reflecting growth in the company's business operations.
Operating performance remained particularly strong, with earnings before interest, taxes, depreciation and amortisation (EBITDA) surging 61.9% to Rs 751 crore from Rs 464 crore a year earlier.
The sharp improvement in operating earnings also translated into a substantial expansion in profitability margins.
EBITDA margin widened to 22.5% in the September quarter, compared with 15.4% in the corresponding quarter of the previous financial year.
The 710-basis-point improvement in EBITDA margin indicates stronger operating profitability, with earnings growth significantly outpacing the increase in revenue.
The company's quarterly performance was marked by growth across key financial parameters, with net profit, revenue and operating earnings all registering year-on-year gains.
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The results highlight a considerable improvement in the company's operating performance during the quarter, as reflected in the faster growth in EBITDA compared with revenue.
Investors are likely to view September-quarter performance positively, with strong profit growth, higher operating earnings and a sharp expansion in margins pointing to improved profitability.
The 61.9% jump in EBITDA, significantly ahead of the 10.9% revenue growth, is particularly encouraging.
However, investors will closely monitor whether the company can sustain its improved margins and maintain earnings momentum in the coming quarters.
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