|
Deepak
Nitrite consolidated net sales declined 14.07% to Rs 1768.34 crore in Q1FY24
compared to Q1FY23. Sales of Phenolics
segment has gone down 20.00% to Rs 1,067.88 crore (accounting for 60.12% of
total sales). Sales of Advanced
Intermediates segment has gone down 2.97% to Rs 708.31 crore (accounting for
39.88% of total sales). Inter-segment
sales rose Rs 6.92 crore to Rs 7.85 crore.
Topline performance was impacted due to industry-wide challenges linked
to inventory destocking and persistent slowdown in EU and other markets. Aggressive
opening up of China led to dumping of products leading to sharp drops in sales
realization. However, the company mentioned impact seems to be transient.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 36.80% to
Rs 202.53 crore. PBIT of Phenolics
segment fell 53.33% to Rs 87.62 crore (accounting for 43.26% of total
PBIT). PBIT of Advanced Intermediates
segment fell 13.41% to Rs 114.91 crore (accounting for 56.74% of total
PBIT).
PBIT
margin of Phenolics segment fell from 14.06% to 8.21%. PBIT margin of Advanced Intermediates segment
fell from 18.18% to 16.22%. Overall PBIT
margin fell from 15.52% to 11.40%.
Operating
profit margin has declined from 17.30% to 11.86%, leading to 41.08% decline in
operating profit to Rs 209.75 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
67.27% to 64.89%. Employee cost
increased from 3.81% to 5.02%. Other
expenses rose from 12.20% to 14.93%.
Power and Oil fuel cost rose from 6.26% to 6.98%.
Other
income rose 231.63% to Rs 31.87 crore.
PBIDT fell 33.91% to Rs 241.62 crore.
Provision for interest fell 78.93% to Rs 1.81 crore.
PBDT
fell 32.83% to Rs 239.81 crore.
Provision for depreciation fell 9.07% to Rs 38.08 crore.
Profit
before tax down 35.98% to Rs 201.73 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 51.83
crore, compared to Rs 80.5 crore.
Effective tax rate was 25.69% compared to 25.55%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 36.11% to Rs
149.90 crore.
Promoters’
stake was 49.13% as of 30 June 2023 ,compared to 45.72% as of 30 June
2022.
Commenting on the
performance for Q1FY24, Mr. Deepak C. Mehta, Chairman & Managing Director
said:
We
entered FY24 on a challenging note while navigating through several global
macro-economic pressures and a slower-than-anticipated increase in consumption,
leading to modest performance. The chemical industry faced difficulties due to
China`s opening up and destocking of inventory across the globe. Nevertheless,
we remain committed to strengthening our market position and enhancing product
portfolio.
In
a key milestone, our wholly owned subsidiary, Deepak Chem Tech Limited (DCTL),
inked a groundbreaking Rs. 5,000 crore MoU with the Government of Gujarat. This
collaboration aims to produce Specialty Chemicals, Phenol, Acetone, and
Bisphenol within the state, with the aim to commence the first phase in
2024-2025 and complete the projects by 2026-2027. This is a testament of our
focus on import substitution through
value-addition.
We
are strategically positioned to take advantage of increasing demand and benefit
from the country`s trend of import substitutions. Exciting projects, such as
solvents like MIBK and MIBC among others, approved by the Board, will enable us
to capitalize on this trend.
Our
noteworthy investment plans reflect our enthusiasm to seize opportunities both
in India and worldwide. We are
continually diversifying our product offerings by introducing innovative
intermediates, expanding our client base and enhancing overall value
propositions. With a strong financial position, valuable client relationships,
and well-considered growth investments,
we are poised
to elevate our
business proposition."
Full year results
analysis
Net
sales (including other operating income) of Deepak Nitrite has increased 17.20%
to Rs 7972.06 crore. Sales of Phenolics
segment has gone up 16% to Rs 4970.49 crore (accounting for 62% of total
sales). Sales of Advanced Intermediates
segment has gone up 21% to Rs 3033.55 crore (accounting for 38% of total
sales).
Profit
before interest, tax and other unallocable items (PBIT) has slumped 21% to Rs
1149.52 crore. PBIT of Phenolics segment
fell 31% to Rs 594.46 crore (accounting for 52% of total PBIT). PBIT of Advanced Intermediates segment fell
7% to Rs 555.06 crore (accounting for 48% of total PBIT).
PBIT
margin of Phenolics segment fell from 20.1% to 12%. PBIT margin of Advanced Intermediates segment
fell from 23.7% to 18.3%. Overall PBIT
margin fell from 21.5% to 14.4%.
Operating
profit margin has declined from 23.57% to 16.17%, leading to 19.59% decline in
operating profit to Rs 1,289.38 crore.
Raw material cost as a % of total sales (net of stock adjustments)
increased from 60.96% to 66.08%.
Purchase of finished goods cost rose from 0.08% to 1.76%. Employee cost decreased from 3.97% to
3.90%. Other expenses rose from 11.74%
to 12.46%. Power and Oil fuel cost rose
from 6.36% to 6.64%.
Other income rose 11.66% to Rs 47.58
crore. PBIDT fell 18.78% to Rs 1336.96
crore. Provision for interest fell
27.20% to Rs 24.78 crore. Loan funds
declined from Rs 315.03 crore as of 31 March 2022 to Rs 72.86 crore as of 31
March 2023. Inventories rose to Rs
893.07 crore as of 31 March 2023 from Rs 584.55 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,309.52
crore as of 31 March 2023 compared to Rs 1,129.06 crore as of 31 March
2022. Cash and bank balance declined
from Rs 41.79 crore as of 31 March 2022 to Rs 39.95 crore as of 31 March
2023. Investments declined from Rs
439.02 crore as of 31 March 2022 to Rs 379.35 crore as of 31 March 2023.
PBDT
fell 18.61% to Rs 1312.18 crore.
Provision for depreciation fell 6.42% to Rs 166.3 crore. Fixed assets increased to Rs 2,196.12 crore
as of 31 March 2023 from Rs 2,036.37 crore as of 31 March 2022. Intangible assets declined from Rs 49.29
crore to Rs 46.32 crore.
Profit
before tax down 20.12% to Rs 1,145.88 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 293.88
crore, compared to Rs 367.81 crore.
Effective tax rate was 25.65% compared to 25.64%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 20.12% to Rs
852.00 crore.
Equity
capital stood at Rs 27.28 crore as of 31 March 2023 to Rs 27.28 crore as of 31
March 2022. Per share face Value
remained same at Rs 2.00.
Promoters’
stake was 49.13% as of 31 March 2023 ,compared to 45.72% as of 31 March 2022
.
Cash flow from
operating activities decreased to Rs 649.92 crore for year ended March 2023
from Rs 823.84 crore for year ended March 2022.
Cash flow used in acquiring fixed assets during the year ended March
2023 stood at Rs 360.85 crore, compared to Rs 186.81 crore during the year
ended March 2022.
The scrip is
currently trading at Rs 2024
|
Deepak Nitrite : Consolidated
Results
|
|
Particulars
|
2306
(03)
|
2206
(03)
|
Var.(%)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Net
Sales
|
1,768.34
|
2,057.99
|
-14
|
7,972.06
|
6,802.19
|
17
|
|
OPM
(%)
|
11.9
|
17.3
|
|
16.2
|
23.6
|
|
|
OP
|
209.75
|
355.98
|
-41
|
1,289.38
|
1,603.58
|
-20
|
|
Other
Inc.
|
31.87
|
9.61
|
232
|
47.58
|
42.61
|
12
|
|
PBIDT
|
241.62
|
365.59
|
-34
|
1,336.96
|
1,646.19
|
-19
|
|
Interest
|
1.81
|
8.59
|
-79
|
24.78
|
34.04
|
-27
|
|
PBDT
|
239.81
|
357.00
|
-33
|
1,312.18
|
1,612.15
|
-19
|
|
Depreciation
|
38.08
|
41.88
|
-9
|
166.3
|
177.7
|
-6
|
|
PBT
|
201.73
|
315.12
|
-36
|
1,145.88
|
1,434.45
|
-20
|
|
EO
Income
|
0
|
0
|
|
0
|
0
|
|
|
PBT
after EO
|
201.73
|
315.12
|
-36
|
1,145.88
|
1,434.45
|
-20
|
|
Taxation
|
51.83
|
80.5
|
-36
|
293.88
|
367.81
|
-20
|
|
PAT
|
149.90
|
234.62
|
-36
|
852.00
|
1,066.64
|
-20
|
|
EPS
(Rs)*
|
#
|
#
|
|
62.5
|
78.2
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 27.28 crore, Face value of Rs 2, Excluding
extraordinary items.
|
|
#
EPS is not annualised
|
|
bps
: Basis points
|
|
EO
: Extraordinary items
|
|
Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
Deepak Nitrite : Consolidated
Segment Results
|
|
|
%
of (Total)
|
2306
(03)
|
2206
(03)
|
Var.(%)
|
%
of (Total)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Sales
|
|
Advanced
Intermediates
|
40
|
708.31
|
729.98
|
-3
|
38
|
3,033.55
|
2,511.05
|
21
|
|
Phenolics
|
60
|
1067.88
|
1334.93
|
-20
|
62
|
4970.49
|
4303.42
|
16
|
|
Total
Reported Sales
|
100
|
1,776.19
|
2,064.91
|
-14
|
100
|
8,004.04
|
6,814.47
|
17
|
|
Less:
Inter segment revenues
|
|
7.85
|
6.92
|
13
|
|
31.98
|
12.28
|
160
|
|
Net
Sales
|
|
1,768.34
|
2,057.99
|
-14
|
|
7,972.06
|
6,802.19
|
17
|
|
PBIT
|
|
Advanced
Intermediates
|
57
|
114.91
|
132.7
|
-13
|
48
|
555.06
|
595.73
|
-7
|
|
Phenolics
|
43
|
87.62
|
187.74
|
-53
|
52
|
594.46
|
867.11
|
-31
|
|
Total
PBIT
|
100
|
202.53
|
320.44
|
-37
|
100
|
1149.52
|
1,462.84
|
-21
|
|
Less
: Interest
|
|
1.81
|
8.59
|
-79
|
|
24.77
|
34.05
|
-27
|
|
Add:
Other un-allcoable
|
|
1.01
|
3.27
|
-69
|
|
21.13
|
5.66
|
273
|
|
PBT
|
|
201.73
|
315.12
|
-36
|
|
1145.88
|
1,434.45
|
-20
|
|