(Reuters) – India’s Deepak Fertilisers and Petrochemicals posted a more-than-four-fold rise in its quarterly profit on Wednesday, aided by strong demand for its crop nutrition products and higher margins.
The company’s consolidated net profit increased to 2.51 billion rupees ($29 million) in the third quarter, from 575.6 million rupees a year earlier.
Deepak Fertiliser’s earnings before interest, taxes, depreciation and amortization (EBITDA) surged 72%, with margins increasing about 18%.
The company said revenue in its crop nutrition business surged 55%, as an above-average monsoon improved crop yields.
The company’s chemicals business posted a relatively smaller 22% increase in revenue, which tempered overall revenue growth to 39.2% to a total of 25.79 billion rupees from a year ago.
Deepak Fertilisers’ year-ago results were impacted due to higher inventories, squeezing sales and profit.
The company’s shares jumped 11.4% to 128 rupees after the results.
(Reporting by Yagnoseni Das and Ashish Chandra in Bengaluru; Editing by Savio D’Souza)
