Deepak Fertilisers & Petrochemicals on Friday reported a 103% year-on-year surge in its net profit at Rs 103 crore for the October-December quarter. Revenues, too, increased by 35% to Rs 1,956 crore.

The rise in net profit was due to margin expansion in the chemicals segment, chairman and MD Sailesh C Mehta said.

The company had seen continuous improvement in operating margins despite significant raw material price increase.

The chemicals segment contributed 93% of the total profit during the quarter. However, the fertiliser segment faced challenges due to uncertainties around raw material availability and costs.

The company’s finance cost reduced by 15.4% y-o-y, primarily driven by better working capital management and reduction in interest rate on existing loans. Going forward, the company expects an increase in TAN (technical ammonium nitrate) demand with a positive outlook for mining, infrastructure and power sectors. In the pharma and specialty chemicals segment, the company sees a shift in the global supply chain trend towards India driving a strong demand for nitric acid from downstream customers, Mehta said.

The company’s new ammonia project at Taloja, Maharashtra, and the TAN plant at Gopalpur, Odisha, are on schedule, it added.