|
Net
sales (including other operating income) of Deepak Nitrite has declined 5.27%
to Rs 1903.4 crore. Sales of Phenolics
segment has gone up 1% to Rs 1365.74 crore (accounting for 71% of total sales). Sales of Advanced Intermediates segment has
gone down 18% to Rs 551.69 crore (accounting for 29% of total sales). Inter-segment sales rose from Rs 14.4 crore
to Rs 14.03 crore.
Profit
before interest, tax and other unallocable items (PBIT) fell 50% to Rs 138.05
crore. PBIT of Phenolics segment fell
33% to Rs 121.19 crore (accounting for 88% of total PBIT). PBIT of Advanced Intermediates segment fell
82% to Rs 16.86 crore (accounting for 12% of total PBIT).
PBIT
margin of Phenolics segment fell from 13.3% to 8.9%. PBIT margin of Advanced Intermediates segment
fell from 13.9% to 3.1%. Overall PBIT
margin fell from 13.5% to 7.2%.
Operating
profit margin has declined from 15.16% to 8.85%, leading to 44.68% decline in
operating profit to Rs 168.54 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
69.63% to 71.78%. Employee cost
increased from 4.25% to 5.29%. Other
expenses rose from 11.58% to 13.12%.
Power and Oil fuel cost rose from 5.19% to 5.87%.
Other
income rose 54.91% to Rs 20.99 crore.
PBIDT fell 40.44% to Rs 189.53 crore.
Provision for interest rose 108.53% to Rs 6.11 crore.
PBDT
fell 41.82% to Rs 183.42 crore.
Provision for depreciation rose 15.66% to Rs 48.22 crore.
Profit
before tax down 50.58% to Rs 135.20 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 37.07
crore, compared to Rs 71.54 crore.
Effective tax rate was 27.42% compared to 26.15%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 51.45% to Rs
98.09 crore.
The
operating performance of the company in the quarter was aberrant arising from a
perfect storm of plants being idled because of deferred demand, lag adjusted
recovery in agrochemical intermediates, and elevated raw material prices and
oversupply from China.
Commenting on the
performance for Q3 & 9M FY25, Mr. Deepak C. Mehta, Chairman & Managing
Director said:
“Normally
the business cycles of AI and phenolics are generally such that on an overall
basis they complement each other. This is the first time we are experiencing
both the businesses are going through short term challenges. I am happy we have
been able to achieve yet another milestone in Phenol capacity utilization.
Domestic production now more or less matches domestic demand and as market
accepts the new normal, margin should improve.
On
the AI business segment, the World has been going through de-stocking in the
Agro-chem business. As an intermediate supplier, we have been impacted with a
lag. As we see, Agro business picking up again it is a matter of time when our
performance would be back to normal.
New
products in the Group including upstream products like nitric acid and
downstream products like MIBK, MIBC should be coming into operations in the
next few months. In the meantime, our long term plan for the polymer business
is rapidly taking shape. Having entered into long term agreements for pipeline
supply of critical feedstock and contracted to acquire German assets for the
final product viz polycarbonate resins, we are actively working to complete the
entire value chain. India continues to import almost 300kta of polycarbonate
resin. Deepak will be producing about 160kta in the first phase. All our
projects are targeted to be completed by the end of FY2028.
Overall,
we remain committed to investing in strategic growth initiatives, including new
product development and targeted market expansion, to ensure long-term value
creation for our shareholders.”
Promoters’
stake was 49.24% as of 31 December 2024 compared to 49.13% as of 31 December
2023 .
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of Deepak Nitrite has increased 9.84%
to Rs 6102.24 crore. Sales of Phenolics
segment has gone up 21% to Rs 4272.83 crore (accounting for 70% of total
sales). Sales of Advanced Intermediates
segment has gone down 9% to Rs 1873.37 crore (accounting for 30% of total
sales). Inter-segment sales rose from Rs
35.53 crore to Rs 43.96 crore.
Profit
before interest, tax and other unallocable items (PBIT) fell 10% to Rs 674.45
crore. PBIT of Phenolics segment rose
24% to Rs 543.63 crore (accounting for 81% of total PBIT). PBIT of Advanced Intermediates segment fell
58% to Rs 130.82 crore (accounting for 19% of total PBIT).
PBIT
margin of Phenolics segment rose from 12.4% to 12.7%. PBIT margin of Advanced Intermediates segment
fell from 15.2% to 7%. Overall PBIT
margin fell from 13.4% to 11%.
Operating
profit margin has declined from 14.80% to 12.70%, leading to 5.71% decline in
operating profit to Rs 775.24 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
66.09% to 68.42%. Purchase of finished
goods cost rose from 1.37% to 1.84%.
Employee cost increased from 4.68% to 4.73%. Other expenses fell from 12.94% to
12.39%. Power and Oil fuel cost fell
from 6.25% to 5.68%.
Other
income rose 7.20% to Rs 61.07 crore.
PBIDT fell 4.87% to Rs 836.31 crore.
Provision for interest rose 144.74% to Rs 18.16 crore.
PBDT
fell 6.14% to Rs 818.15 crore. Provision
for depreciation rose 20.91% to Rs 144.12 crore.
Profit
before tax down 10.43% to Rs 674.03 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 179.18
crore, compared to Rs 195.49 crore.
Effective tax rate was 26.58% compared to 25.98%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 11.17% to Rs
494.81 crore.
Promoters’
stake was 49.24% as of 31 December 2024 ,compared to 49.13% as of 31 December
2023 .
The scrip is
currently trading at Rs 2236
|
Deepak Nitrite : Consolidated
Results
|
|
Particulars
|
2412
(03)
|
2312
(03)
|
Var.(%)
|
2412
(09)
|
2312
(09)
|
Var.(%)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Net
Sales
|
1,903.40
|
2,009.23
|
-5
|
6,102.24
|
5,555.62
|
10
|
7,681.83
|
7,972.06
|
-4
|
|
OPM
(%)
|
8.9
|
15.2
|
|
12.7
|
14.8
|
|
14.6
|
16.2
|
|
|
OP
|
168.54
|
304.65
|
-45
|
775.24
|
822.16
|
-6
|
1,123.28
|
1,289.38
|
-13
|
|
Other
Inc.
|
20.99
|
13.55
|
55
|
61.07
|
56.97
|
7
|
76.1
|
47.58
|
60
|
|
PBIDT
|
189.53
|
318.20
|
-40
|
836.31
|
879.13
|
-5
|
1,199.38
|
1,336.96
|
-10
|
|
Interest
|
6.11
|
2.93
|
109
|
18.16
|
7.42
|
145
|
11.83
|
24.78
|
-52
|
|
PBDT
|
183.42
|
315.27
|
-42
|
818.15
|
871.71
|
-6
|
1,187.55
|
1,312.18
|
-9
|
|
Depreciation
|
48.22
|
41.69
|
16
|
144.12
|
119.2
|
21
|
165.66
|
166.3
|
0
|
|
PBT
|
135.20
|
273.58
|
-51
|
674.03
|
752.53
|
-10
|
1,021.89
|
1,145.88
|
-11
|
|
EO
Income
|
|
0
|
|
|
0
|
|
79.84
|
0
|
|
|
PBT
after EO
|
135.20
|
273.59
|
-51
|
674.03
|
752.53
|
-10
|
1,101.73
|
1,145.88
|
-4
|
|
Taxation
|
37.11
|
71.54
|
-48
|
179.22
|
195.49
|
-8
|
290.83
|
293.88
|
-1
|
|
PAT
|
98.09
|
202.05
|
-51
|
494.81
|
557.04
|
-11
|
810.90
|
852.00
|
-5
|
|
EPS
(Rs)*
|
#
|
#
|
|
#
|
#
|
|
59.5
|
62.5
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 27.28 crore, Face value of Rs 2, Excluding
extraordinary items.
|
|
#
EPS is not annualised
|
|
bps
: Basis points
|
|
EO
: Extraordinary items
|
|
Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
Deepak Nitrite : Consolidated
Segment Results
|
|
|
%
of (Total)
|
2412
(03)
|
2312
(03)
|
Var.(%)
|
%
of (Total)
|
2412
(09)
|
2312
(09)
|
Var.(%)
|
%
of (Total)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Sales
|
|
Advanced
Intermediates
|
29
|
551.69
|
674.3
|
-18
|
30
|
1873.37
|
2052.81
|
-9
|
35
|
2,723.88
|
3,033.55
|
-10
|
|
Phenolics
|
71
|
1365.74
|
1349.33
|
1
|
70
|
4272.83
|
3537.34
|
21
|
65
|
5003.45
|
4970.49
|
1
|
|
Total
Reported Sales
|
100
|
1,917.43
|
2,023.63
|
-5
|
100
|
6,146.20
|
5,590.15
|
10
|
100
|
7,727.33
|
8,004.04
|
-3
|
|
Less:
Inter segment revenues
|
|
14.03
|
14.4
|
-3
|
|
43.96
|
35.53
|
24
|
|
45.5
|
31.98
|
42
|
|
Net
Sales
|
|
1,903.40
|
2,009.23
|
-5
|
|
6,102.24
|
5,554.62
|
10
|
|
7,681.83
|
7,972.06
|
-4
|
|
PBIT
|
|
Advanced
Intermediates
|
12
|
16.86
|
93.67
|
-82
|
19
|
130.82
|
311.95
|
-58
|
41
|
445.85
|
555.06
|
-20
|
|
Phenolics
|
88
|
121.19
|
179.77
|
-33
|
81
|
543.63
|
437.79
|
24
|
59
|
643.92
|
594.46
|
8
|
|
Total
PBIT
|
100
|
138.05
|
273.44
|
-50
|
100
|
674.45
|
749.74
|
-10
|
100
|
1089.77
|
1149.52
|
-5
|
|
Less
: Interest
|
|
6.11
|
2.93
|
109
|
|
18.16
|
7.42
|
145
|
|
11.83
|
24.77
|
-52
|
|
Add:
Other un-allcoable
|
|
3.26
|
3.08
|
6
|
|
17.74
|
10.21
|
74
|
|
23.78
|
21.13
|
13
|
|
PBT
|
|
135.2
|
273.59
|
-51
|
|
674.03
|
752.53
|
-10
|
|
1101.72
|
1145.88
|
-4
|
|