Deepak Nitrite held its conference call on 10th Aug 2017 which was addressed by Umesh Asaikar CEO.
Key Highlights
The Roha plant started its full production from May 17 onwards and normalcy resumed. The company received and booked around Rs 18.33 crore of claims received from insurance in June 17 quarter.
The entire capacity of Roha will be available for the rest of the year. The company also added some of the production line for manufacturing some raw materials which will help the company in completing the value chain for some value added products.
Expects the momentum to be strong in bulk and chemical segment. The company has added some high value agro chemical products which will see the commercial production during FY 18.
Its fine and specialty chemical segment, saw margin of around 14.8% in June 17 quarter as compared to margin of around 25-27% for past quarters as the company was not able to receive some key raw materials on time which affected the overall production. Further, there was lower production of value added products which also affected the margins. Expects the normalcy to return soon in this segment.
The company has launched some pharma intermediates which are an import substituent and will see the offtake in FY 18 itself.
The Performance product segment saw increase in losses, as there were some offtake issues with the customer. Also market was generally tight due to some issues on taxation structures. Expects the segment to break even in H2 FY 18. Management expects the segment to do well going forward in FY 19 as the plant operates on full fledge basis.
Overall, management is not happy with the way how things have been shaping up as compared to what was expected and expects normalcy to return soon.
The Phenol plant is expected to start commercial production from Mar 18 onwards. The entire project is going on an expected line.
Overall, expects performance to improve from H2 FY 18 onwards.
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