Other income fell 40.40% to Rs 3.54 crore.  PBIDT fell 10.15% to Rs 413.87 crore.  Provision for interest fell 50.28% to Rs 7.06 crore.  PBDT fell 8.87% to Rs 406.81 crore.  Provision for depreciation fell 20.97% to Rs 44.62 crore.  Profit before interest, tax and other unallocable items (PBIT) has slumped 7.45% to Rs 388.95 crore.  PBIT of Fine & Speciality Chemicals segment fell 3.73% to Rs 76.74 crore (accounting for 19.73% of total PBIT).  PBIT of Phenolics segment fell 34.08% to Rs 175.85 crore (accounting for 45.21% of total PBIT).  PBIT of Basic Chemicals segment rose 36.54% to Rs 96.55 crore (accounting for 24.82% of total PBIT).  PBIT of Performance Intermediates segment rose 1,205.25% to Rs 39.81 crore (accounting for 10.24% of total PBIT). 

PBIT margin of Fine & Speciality Chemicals segment fell from 38.70% to 32.62%.  PBIT margin of Phenolics segment fell from 28.46% to 15.67%.  PBIT margin of Basic Chemicals segment fell from 28.84% to 24.21%.  PBIT margin of Performance Intermediates segment rose from 3.52% to 24.68%.  Overall PBIT margin fell from 28.48% to 20.28%. 

Profit before tax down 7.12% to Rs 362.19 crore.  Provision for tax was expense of Rs 94.98 crore, compared to Rs 99.83 crore.  Effective tax rate was 26.22% compared to 25.60%.

Net profit attributable to owners of the company decreased 7.89% to Rs 267.21 crore. 

Equity capital stood at Rs 27.28 crore as of 31 March 2022 to Rs 27.28 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00. 

Commenting on the performance, Mr. Deepak C. Mehta, Chairman & Managing Director, said,

"Our FY22 performance encapsulates the heightened resilience and agility in our business model as we have scaled new benchmarks in revenues and profitability during the year. This was achieved in the backdrop of sharp inflation in operating costs, higher input prices and disrupted supply chains. Both Revenues and PAT demonstrated significant growth in FY22 on a consolidated basis. The Company sustains a high degree of efficiency and continues to make progress on several growth initiatives. We will continue to be nimble to the changing needs and preferences of our customers and deliver specialized solutions. While doing so, we will prudently deploy capital to elevate our market position in the chosen chemistries. Our foray into advanced solvents will diversify our product portfolio, broaden our customer base, and raise the amount of sophisticated, high-margin products in the portfolio, thereby enhancing our business proposition."

Full year results analysis

Net sales of Deepak Nitrite have increased 56.02% to Rs 6802.19 crore.  Sales of Fine & Speciality Chemicals segment has gone up 10.83% to Rs 846.25 crore (accounting for 12.22% of total sales).  Sales of Phenolics segment has gone up 67.59% to Rs 4,291.20 crore (accounting for 61.94% of total sales).  Sales of Basic Chemicals segment has gone up 65.23% to Rs 1,260.95 crore (accounting for 18.20% of total sales).  Sales of Performance Intermediates segment has gone up 74.00% to Rs 529.26 crore (accounting for 7.64% of total sales).  Inter-segment sales rose Rs 31.65 crore to Rs 125.47 crore. 

Operating profit margin has declined from 28.60% to 23.57%, leading to 28.59% rise in operating profit to Rs 1,603.58 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 52.05% to 61.04%.   Employee cost decreased from 5.65% to 3.97%.   Other expenses fell from 13.76% to 11.74%.   Power and Oil fuel cost rose from 6.06% to 6.36%.  

Other income rose 98% to Rs 42.61 crore.  PBIDT rose 29.77% to Rs 1646.19 crore.  Provision for interest fell 54.12% to Rs 34.04 crore.  Loan funds declined from Rs 589.74 crore as of 31 March 2021 to Rs 315.03 crore as of 31 March 2022.  Inventories rose to Rs 584.55 crore as of 31 March 2022 from Rs 382.69 crore as of 31 March 2021.  Sundry debtors were higher at Rs 1,129.06 crore as of 31 March 2022 compared to Rs 756.30 crore as of 31 March 2021.  Cash and bank balance rose to Rs 41.79 crore as of 31 March 2022 from Rs 33.43 crore as of 31 March 2021.  Investments rose to Rs 439.02 crore as of 31 March 2022 from Rs 189.29 crore as of 31 March 2021 . 

PBDT rose 34.98% to Rs 1612.15 crore.  Provision for depreciation rose 16.43% to Rs 177.7 crore.  Fixed assets declined from Rs 2,042.45 crore as of 31 March 2021 to Rs 2,036.37 crore as of 31 March 2022.  Intangible assets increased from Rs 41.73 crore to Rs 49.29 crore. 

Profit before interest, tax and other unallocable items (PBIT) has jumped 29.75% to Rs 1,535.93 crore.  PBIT of Fine & Speciality Chemicals segment fell 22.85% to Rs 257.48 crore (accounting for 16.76% of total PBIT).  PBIT of Phenolics segment rose 37.08% to Rs 867.11 crore (accounting for 56.46% of total PBIT).  PBIT of Basic Chemicals segment rose 60.54% to Rs 312.84 crore (accounting for 20.37% of total PBIT).  PBIT of Performance Intermediates segment rose 335.26% to Rs 98.50 crore (accounting for 6.41% of total PBIT). 

PBIT margin of Fine & Speciality Chemicals segment fell from 43.71% to 30.43%.  PBIT margin of Phenolics segment fell from 24.70% to 20.21%.  PBIT margin of Basic Chemicals segment fell from 25.53% to 24.81%.  PBIT margin of Performance Intermediates segment rose from 7.44% to 18.61%.  Overall PBIT margin fell from 26.96% to 22.17%. 

Profit before tax grew 37.70% to Rs 1,434.45 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 367.81 crore, compared to Rs 265.91 crore.  Effective tax rate was 25.64% compared to 25.53%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 37.49% to Rs 1,066.64 crore. 

Equity capital stood at Rs 27.28 crore as of 31 March 2022 to Rs 27.28 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00. 

Promoters’ stake was 45.72% as of 31 March 2022 compared to 45.69% as of 31 March 2021 . 

Cash flow from operating activities decreased to Rs 823.84 crore for year ended March 2022 from Rs 1,001.90 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 186.81 crore, compared to Rs 214.99 crore during the year ended March 2021.

Promoters’ stake was 45.72% as of 31 March 2022 compared to 45.69% as of 31 March 2021. 

The Board of Directors have recomrnended, subject to the approval of shareholders, dividend of Rs.7/- per equity share of face vatue of Rs 2/- (Rupees Two only) each for the year ended March 3l, 2022 on 13,63,93,041 equity shares amounting to Rs.95.48 crore

The scrip is currently trading at Rs 2233