Deepak Nitrite's consolidated net profit jumped 294.7% to Rs 156.71 crore in Q3 December 2019 as against Rs 39.74 crore reported in Q3 December 2018. Net sales advanced 46.1% to Rs 1119.86 crore in Q3 December 2019 over Q3 December 2018.

Year on Year (YoY) numbers are not comparable due to the addition of Phenol Segment starting Q4FY19.

On a standalone basis, net profit jumped 348.7% to Rs 141.88 crore in Q3 2019 over Q3 2018. Net sales rose 29.3% to Rs 584.91 crore on YoY basis.

Balanced growth across basic chemicals, fine & speciality chemicals and performance products segment resulted in robust topline performance during the quarter. Overall, topline was also supported by encouraging demand scenario of company's products in the export markets.

EBITDA grew by 200% in Q3 FY20 to Rs 215 crore, as against Rs 72 crore in the same period last year. Robust EBITDA performance was a result of operating leverage from higher volumes, realisation gains across most products and management efforts to optimise production schedules as well as focus on high-value high-margin products.

Deepak Phenolics (DPL), a wholly-owned subsidiary of Deepak Nitrite, operates a Global Scale Plant to manufacture Phenol & Acetone, with a capacity of 200,000 MTPA and 120,000 MTPA respectively. This is supported by capacity to manufacture 260,000 MT of Cumene for captive consumption.

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 beenable to increase sales volumes to sustain its leadership position in the domestic market. The capacity utilisation continued to remain high, at over 100%.

Commenting on the performance, Deepak C. Mehta, chairman & managing director, said, "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. 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."

The company has a positive outlook and said it is well placed to address the opportunities emerging across the chemicals industry landscape on the back of its diversified product portfolio across key product categories. Global customers are also seeking to establish operations in alternate markets other than China for which India is better placed. Furthermore, the company in filing said that uncertainties caused by the corona virus are exacerbating the concerns around China. This is a tailwind for the speciality chemical industry and the company is well placed to continue to build upon its success in recent years. The firm is secure on the raw materials front, since it sources most of its raw materials locally and has a well-integrated facility. It has also undertaken positions to ensure that supply of imported raw materials are covered for the current quarter causing no disturbance to operationsas a result of the developments in China.

Deepak Nitrite offers sodium nitrite, 2 ethyl hexyl nitrate and optical brightening agent (OBA). The firm's segments include bulk chemicals and commodities (BCC), fine and speciality chemicals (FSC), and fluorescent whitening agent (FWA). The BCC segment offers nitro tolunes, fuel additives and sodium nitrite/nitrate.