Deepak Nitrite Reports Robust Performance in Q3 FY18

MUMBAI, January 19, 2018 /PRNewswire/ --

- Net Profit (PAT) grows 176% y-o-y to Rs. 20.34 crore 

- Total Revenue at Rs. 371.8 crore Vs. Rs. 283.9 crore in Q3 FY17, up by 31% 

- EBITDA at Rs. 52.7 crore Vs. Rs. 31.4 crore in Q3 FY17, growth of 68% 

- PAT at Rs. 20.3 crore Vs. Rs. 7.4 crore in Q3 FY17, higher by 176% 

Deepak Nitrite Limited (BSE: 506401, NSE: DEEPAKNTR, ISIN ID: INE288B01029), one of the leading manufacturer of chemical intermediates, having a wide product portfolio of Basic Chemicals (BC), Fine & Speciality Chemicals (FSC) and Performance Products (PP), has announced its financial results for the quarter and nine-months ended December 31, 2017.

Growth has been driven by the BC segment which has benefited from favourable demand trends in domestic and international markets. The segments of FSC and PP have also performed well following resumption of normal operations at Roha and Hyderabad plants, respectively. The combination of strong traction in BC segment along with normalised performance of FSC and PP segments has enabled the Company to deliver a sharp rise in Q3 FY18 PAT on a year-on-year basis.

Total Income stood at Rs. 371.78 crore in Q3 FY18 compared to Rs. 283.92 crore in Q3 FY17, growing 31% y-o-y. Revenues from the BC & PP segments increased due to higher volumes and improved pricing, whereas the FSC segment has reported growth primarily on the back of resumption of normal operations; whereas PAT grew to Rs. 20.34 crore in Q3 FY18 as compared to Rs. 7.36 crore in Q3 FY17, showing robust growth of 176%.

CMD's Message 

Commenting on the performance, Mr. Deepak C. Mehta, Chairman and Managing Director, said, "I am elated to share that for the quarter and nine-month period, we have reported exalted financials with strong growth and improved profitability on a year-on-year basis.

There has been considerable volatility in prices of inputs and finished goods as well as in forex rates. Despite these challenges, we have selectively pursued opportunities in domestic and export markets, enabling us to grow volumes across all SBUs. We are especially heartened by the performance of the Basic Chemicals and Performance Products segment which has delivered enhanced profitability due to robust demand from local customers who are benefiting from supply disruptions in China. 

We are on the cusp of commissioning- our Greenfield mega project for production of Phenol & Acetone. This global scale plant, aligned to the Make in India initiative, is poised to commence commercial operations shortly. This will elevate our performance and the opportunities for forward integration will open up new platforms for growth in the ensuing years." 

Financial Highlights 

Q3 FY2018 

• Total Income stood at Rs. 371.78 crore in Q3 FY18 compared to Rs. 283.92 crore in Q3 FY17, growing 31% y-o-y. Revenues from the BC & PP segments increased due to higher volumes and improved pricing, whereas the FSC segment has reported growth primarily on the back of resumption of normal operations.
• EBITDA was higher by 68% to Rs. 52.70 crore in Q3 FY18, compared to Rs. 31.41 crore in Q3 FY17. Margins improved by 320 basis points to 14.2% in Q3 FY18 compared to 11.0% in the same period last year. In addition to base effect, improvement in the EBITDA margin on a y-o-y basis was due to higher volumes and better realisations in certain products as well as cost management initiatives undertaken.
• PBT stood at Rs. 30.72 crore in Q3 FY18 compared to Rs. 10.22 crore in the same period last year.
• PAT grew to Rs. 20.34 crore in Q3 FY18 as compared to Rs 7.36 crore in Q3 FY17.
• EPS for Q3 FY18 stood at Rs. 1.56 per share (of face value of Rs. 2 each) on an enlarged capital base compared to Rs. 0.63 per share in Q3 FY17. (QIP: Issuance of 1,44,23,076 shares of Rs. 2 each at a price of Rs. 104 per share in March, 2017).

Performance Highlights 

Domestic and International 

• Domestic revenues stood at Rs. 227.38 crore in Q3 FY18 from Rs. 167.13 crore in the same period last year, representing growth of 31% y-o-y. This has been driven by higher demand from customers in the local market, who are benefitting from supply disruption in China.
• Revenues from exports came in at Rs. 139.73 crore in Q3 FY18 compared to Rs. 112.66 crore in Q3 FY17 higher by 24%. Export performance was supported by encouraging demand trends in key geographies.

Update on Phenol & Acetone Project 

Progress: 

The Greenfield project has now entered the last lap of construction completion and finishing work. There has been enhanced focus on operational readiness and flawless start-up for which technology provider's team is at the project site and has commenced the final checks.

About Deepak Nitrite Limited 

Deepak Nitrite Limited (NSE: DEEPAKNTR, BSE: 506401) headquartered at Vadodara, Gujarat, DNL is a multi-division and multi-product, chemical intermediate with manufacturing facilities at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad; having product portfolio of Basic Chemicals (BC), Fine & Speciality Chemicals (FSC) and Performance Products (PP). Further, it is also setting up a project for manufacture of Phenol and Acetone through its wholly owned subsidiary Deepak Phenolics. As a partner of choice for Domestic and Global Chemical majors, DNL is emerging as one of the fastest growing Company, adhering to Responsible Care. 

Please visit http: http://www.deepaknitrite.com for more information on the company.

Media Contact:
Jaydip Chowdhury
Head - Corporate Affairs & Communication
Deepak Nitrite Ltd.
[email protected] 
+91-7573949521