Other income rose 22.22% to Rs 8.25 crore. Profit before interest, tax and other unallocable items (PBIT) have jumped 153.92% to Rs 441.85 crore.  PBIT of Fine & Speciality Chemicals segment rose 8.15% to Rs 67.41 crore (accounting for 15.26% of total PBIT).  PBIT of Phenolics segment rose 318.62% to Rs 287.26 crore (accounting for 65.01% of total PBIT).  PBIT of Basic Chemicals segment rose 132.69% to Rs 85.07 crore (accounting for 19.25% of total PBIT).  PBIT of Performance Products segment fell 67.54% to Rs 2.11 crore (accounting for 0.48% of total PBIT). 

PBIT margin of Fine & Speciality Chemicals segment fell from 44.59% to 32.58%.  PBIT margin of Phenolics segment rose from 20.75% to 28.76%.  PBIT margin of Basic Chemicals segment rose from 23.91% to 34.18%.  PBIT margin of Performance Products segment fell from 12.05% to 2.26%.  Overall PBIT margin rose from 25.69% to 28.54%. 

Provision for interest fell 55.76% to Rs 10.94 crore.  Provision for depreciation rose 40.47% to Rs 43.56 crore.  Profit before tax grew 205.53% to Rs 405.25 crore. Provision for tax was expense of Rs 102.62 crore, compared to Rs 33.69 crore.  Effective tax rate was 25.32% compared to 25.40%. Net profit attributable to owners of the company increased 205.84% to Rs 302.63 crore. 

Promoters’ stake was 45.69% as of 30 June 2021 compared to 45.69% as of 30 June 2020 . 

Full year results analysis

Net sales (including other operating income) of Deepak Nitrite has increased 3.07% to Rs 4359.75 crore.  Sales of Fine & Speciality Chemicals segment has gone up 30.46% to Rs 763.55 crore (accounting for 17.39% of total sales).  Sales of Phenolics segment has gone up 27.97% to Rs 2,560.50 crore (accounting for 58.31% of total sales).  Sales of Basic Chemicals segment has gone down 18.84% to Rs 763.17 crore (accounting for 17.38% of total sales).  Sales of Performance Products segment has gone down 60.35% to Rs 304.18 crore (accounting for 6.93% of total sales).  Inter-segment sales came down from Rs 63.85 crore to Rs 31.65 crore. 

Operating profit margin has jumped from 24.25% to 28.60%, leading to 21.57% rise in operating profit to Rs 1,247.03 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 55.85% to 52.05%. Employee cost increased from 5.16% to 5.65%. Other expenses fell from 14.59% to 13.76%. Power and Oil fuel cost fell from 6.78% to 6.06%.  

Other income fell 38.86% to Rs 21.52 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 19.51% to Rs 1,183.80 crore. PBIT of Fine & Speciality Chemicals segment rose 90.44% to Rs 333.73 crore (accounting for 28.19% of total PBIT). PBIT of Phenolics segment rose 237.71% to Rs 632.57 crore (accounting for 53.44% of total PBIT).  PBIT of Basic Chemicals segment fell 6.92% to Rs 194.87 crore (accounting for 16.46% of total PBIT).  PBIT of Performance Products segment fell 94.59% to Rs 22.63 crore (accounting for 1.91% of total PBIT). 

PBIT margin of Fine & Speciality Chemicals segment rose from 29.94% to 43.71%.  PBIT margin of Phenolics segment rose from 9.36% to 24.70%.  PBIT margin of Basic Chemicals segment rose from 22.26% to 25.53%.  PBIT margin of Performance Products segment fell from 54.57% to 7.44%.  Overall PBIT margin rose from 23.07% to 26.96%. 

Provision for interest fell 35.41% to Rs 74.2 crore.  Loan funds declined from Rs 1,043.24 crore as of 31 March 2020 to Rs 539.34 crore as of 31 March 2021.  Inventories declined from Rs 394.50 crore as of 31 March 2020 to Rs 382.69 crore as of 31 March 2021.  Sundry debtors were higher at Rs 756.30 crore as of 31 March 2021 compared to Rs 612.72 crore as of 31 March 2020.  Cash and bank balance rose to Rs 33.43 crore as of 31 March 2021 from Rs 31.40 crore as of 31 March 2020.  Investments rose to Rs 189.29 crore as of 31 March 2021 from Rs 2.38 crore as of 31 March 2020 . 

Provision for depreciation rose 9.23% to Rs 152.63 crore.  Fixed assets increased to Rs 2,042.45 crore as of 31 March 2021 from Rs 1,974.18 crore as of 31 March 2020.  Intangible assets increased from Rs 30.07 crore to Rs 41.73 crore. 

Profit before tax grew 29.18% to Rs 1,041.72 crore.  Provision for tax was expense of Rs 265.91 crore, compared to Rs 195.37 crore.  Effective tax rate was 25.53% compared to 24.23%.

Net profit attributable to owners of the company increased 26.97% to Rs 775.81 crore. 

Promoters’ stake was 45.69% as of 31 March 2021 compared to 45.69% as of 31 March 2020 . 

Cash flow from operating activities increased to Rs 999.04 crore for year ended March 2021 from Rs 764.66 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 209.56 crore, compared to Rs 417.43 crore during the year ended March 2020. 

The scrip is currently trading at Rs 1898