PBIT margin of Phenolics segment fell from 19.38% to 7.99%.  Overall PBIT margin fell from 20.66% to 12.24%. 

Operating profit margin has declined from 22.99% to 13.81%, leading to 29.93% decline in operating profit to Rs 270.85 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 62.48% to 71.00%.   Employee cost decreased from 4.08% to 3.85%.   Other expenses rose from 10.37% to 11.88%.   Power and Oil fuel cost rose from 6.06% to 7.12%.  

Other income rose 42.82% to Rs 12.04 crore.  PBIDT fell 28.38% to Rs 282.89 crore.  Provision for interest fell 36.15% to Rs 5.9 crore.  

PBDT fell 28.19% to Rs 276.99 crore.  Provision for depreciation fell 3.75% to Rs 42.4 crore. 

Profit before tax down 31.34% to Rs 234.59 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 60.12 crore, compared to Rs 87.34 crore.  Effective tax rate was 25.63% compared to 25.56%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 31.40% to Rs 174.47 crore. 

Equity capital stood at Rs 27.28 crore as of 30 September 2022 to Rs 27.28 crore as of 30 September 2021.  Per share face Value remained same at Rs 2.00. 

Promoters’ stake was 45.72% as of 30 September 2022 ,compared to 45.69% as of 30 September 2021. 

For year-to-date (YTD) results analysis

Net sales of Deepak Nitrite have increased 25.32% to Rs 4019.64 crore.  Sales of Phenolics segment has gone up 22.61% to Rs 2,619.01 crore (accounting for 64.92% of total sales).  Inter-segment sales came down from Rs 47.20 crore to Rs 14.65 crore. 

Profit before interest, tax and other unallocable items (PBIT) has slumped 29.32% to Rs 561.45 crore.  PBIT of Phenolics segment fell 42.80% to Rs 290.40 crore (accounting for 51.72% of total PBIT). 

PBIT margin of Phenolics segment fell from 23.77% to 11.09%.  Overall PBIT margin fell from 24.41% to 13.92%. 

Operating profit margin has declined from 26.13% to 15.59%, leading to 25.20% decline in operating profit to Rs 626.83 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 59.51% to 68.96%.   Employee cost decreased from 4.16% to 3.83%.   Other expenses rose from 10.91% to 12.04%.   Power and Oil fuel cost rose from 5.78% to 6.68%.  

Other income rose 29.80% to Rs 21.65 crore.  PBIDT fell 24.13% to Rs 648.48 crore.  Provision for interest fell 28.20% to Rs 14.49 crore.  

PBDT fell 24.03% to Rs 633.99 crore.  Provision for depreciation fell 3.80% to Rs 84.28 crore.   

Profit before tax down 26.40% to Rs 549.71 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 140.62 crore, compared to Rs 189.96 crore.  Effective tax rate was 25.58% compared to 25.43%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 26.55% to Rs 409.09 crore. 

Equity capital stood at Rs 27.28 crore as of 30 September 2022 to Rs 27.28 crore as of 30 September 2021.  Per share face Value remained same at Rs 2.00. 

Promoters’ stake was 45.72% as of 30 September 2022 ,compared to 45.69% as of 30 September 2021. 

On June 02, 2022, an incidence of fire occurred around the warehouse section of company`s one of the manufacturing sites located at Nandesari, Gujarat. This incident led to damage of certain property, plant and equipment, inventory and has interrupted business for which the company has completed  all the necessary actions for restoration of the facilities to restart the operations  at full capacity.The company is adequately insured for reinstatement value of damaged assets and loss of profits due to business interruption. The company has lodged claim of this incident with the insurance company and the survey is currently ongoing.

The company has estimated and recognised an initial loss of Rs 47.20 crore on account of damage to certain property, plant and equipment & inventory and has recognised insurance claim receivable to the extent of aforesaid losses. Further, the company is in the process of determining final claim for reinstatement of assets based upon estimated cost. The aforementioned losses and corresponding credit arising from insurance claim receivables has been presented on a net basis (Rs Nil) under exceptional Items in the above results for the quarter ended June 30, 2022 and half yera ended September 2022.

The Group has planned introduction of several downstream chemicals and complex chemical platforms which shall significantly diversify its operations adding to the existing wide range of value-added product mix. It has significant presence in value chain from basic intermediates to fine and speciality products to performance products through integrated  operations  with  processes  ranging  from  manufacturing  basic  intermediates  to  niche  and  complex intermediates, leading to high dependency on each other as most of the products are forward-backward integrated, serving varied end-user industries across all the geographies. This gives flexibility to focus on manufacturing products that enjoy encouraging demand and offer better price. Further, over the period of time, the business scenario and macro-economic conditions have changed.

The Board of directors at their meeting held on November 09, 2022 approved investment upto 51% of the equity share capital of Deepak Oman Industries FZC LLC, a company incorporated in Sultanate of Oman, to set up chemical manufacturing palnt in Oman of Sultanate.