Deepak Nitrite Delivers yet Another Quarter of Elevated Performance During Q3 FY2020

• Published Month : Tuesday, 04 Feb 2020 12:00 pm

Standalone Revenues at Rs. 587 crore vs. Rs. 458 crore in Q3 FY19, higher by 28%

Ranked among Fortune Next 500 and recognized among the top 25 wealth creators by Fortune Magazine, India, Deepak Nitrite (NSE - DEEPAKNTR) (BSE - 506401) is acknowledged as a major manufacturer of chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas. Its products are manufactured across five locations, which are all accredited by Responsible Care. Deepak Nitrite Limited has announced its financial results for the quarter and nine months ended 31st December, 2019.

Deepak Nitrite Ltd. (DNL) is reaping benefits out of being an integrated player in the chemicals industry. It sources most of its raw materials domestically and supplies a diverse range of intermediates across industries including agrochemicals, pharma, colours, refinery products, personal care and healthcare products. It has assiduously maintained its position as a supplier of choice for global and domestic customers alike.

Deepak Phenolics Ltd. (DPL) registered revenue growth of 24% to Rs. 550 crore in Q3 FY20, with EBITDA of Rs. 58 crore and has delivered its maiden profitable quarter with PAT of Rs. 15 crore. Despite the challenges in the Phenol and Acetone market globally and slowing economic growth in the domestic market, the Company has been able to increase sales volumes to sustain its leadership position in the domestic market. The capacity utilisation continued to remain high, at over 100%.

CMD's Message

Commenting on the performance, Mr. Deepak C. Mehta, Chairman & Managing Director, said, "I am delighted to report another quarter of strong earnings performance. Our profitability increased manifold with PBT and PAT increasing by 298% and 349% respectively. We have capitalised on growth opportunities across global markets by demonstrating agility and nimbleness throughout our operations. We have exercised tight controls over production and inventories, constantly monitored global industry developments, taken appropriate actions while closely engaging with customers, all of which has helped us to optimise our performance.

It is heartening to share that all three SBUs have demonstrated encouraging growth momentum allowing us to report higher volumes. In our standalone operations, the percentage growth in exports on a YTD basis was 3 times as fast as growth in domestic revenues, clearly demonstrating our ability to win global market share. This also underlines our leadership position in key products predicated on a high degree of backward integration.

Deepak Phenolics, which was established last year, performed extremely well in terms of volumes. However, as a commodity product, it is susceptible to the global cycle of slowing economic growth and impact of input prices which have suppressed the margins. It is hoped that the commodity cycle will improve in the latter half of the next fiscal.