PBIT margin of Phenolics segment rose from 10.75% to 13.32%.  PBIT margin of Advanced Intermediates segment fell from 18.03% to 13.89%.  Overall PBIT margin fell from 13.73% to 13.51%. 

Operating profit margin has declined from 15.80% to 15.16%, leading to 3.16% decline in operating profit to Rs 304.65 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 65.48% to 69.63%.   Employee cost increased from 4.19% to 4.25%.   Other expenses fell from 13.26% to 11.58%.   Power and Oil fuel cost fell from 6.92% to 5.19%.  

Other income rose 1.42% to Rs 13.55 crore.  PBIDT fell 2.97% to Rs 318.2 crore.  Provision for interest fell 49.74% to Rs 2.93 crore. 

PBDT fell 2.13% to Rs 315.27 crore.  Provision for depreciation rose 1.44% to Rs 41.69 crore. 

Profit before tax down 2.65% to Rs 273.58 crore.  Share of profit/loss were nil in both the periods.

Provision for tax was expense of Rs 71.54 crore, compared to Rs 71.97 crore.  Effective tax rate was 26.15% compared to 25.61%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 3.35% to Rs 202.05 crore. 

Promoters’ stake was 49.13% as of 31 December 2023 ,compared to 45.72% as of 31 December 2022. 

Commenting on the performance for Q3 & 9M FY24, Mr. Deepak C. Mehta, Chairman & Managing Director said, "I am happy to share that we have a concrete plan for the next five years. DNL is on a journey and it has committed itself to creating one of the most integrated chemical and petrochemical complexes in the world that would continue to open many frontiers of growth in the chemical industry. On one side while we establish global scale intermediate plants serving the continuously growing domestic market, we would take advantage of world scale building blocks of chemicals too. With the addition of knowledge intensive capabilities through our research base, we would also create a competitive and high value specialties business for the world market.

We would thus be able to benefit from both the large volumes and filling up of the demand-supply gap for intermediates in India. We will also become a port of call for Global Customers as we would be able to offer a platter of technology and advanced chemistries for the world market The next five years would bring forward a blend of opportunities, some of which would enhance topline while others would make us more resilient by improving competitiveness and increase our value add.

In the next five years, Deepak plans to cover the entire gamut of petrochemicals and engineering polymers to specialty and performance products. In most of the projects that we are taking up we would have the first mover advantage in the Indian market.

Coming to the quarterly performance, I am happy to realise that, in spite of significant fluctuations in the world markets and challenging performance by players, both upstream and downstream, in Deepak’s products, we have been able to remain stable. I believe this is important while we continue our quest towards more high growth and high margin businesses in the years to come."

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Deepak Nitrite has declined 7.57% to Rs 5555.62 crore.  Sales of Phenolics segment has gone down 6.93% to Rs 3,537.34 crore (accounting for 63.28% of total sales).  Sales of Advanced Intermediates segment has gone down 8.07% to Rs 2,052.81 crore (accounting for 36.72% of total sales).  Inter-segment sales rose Rs 22.96 crore to Rs 34.53 crore. 

Profit before interest, tax and other unallocable items (PBIT) has slumped 10.31% to Rs 749.74 crore.  PBIT of Phenolics segment rose 4.88% to Rs 437.79 crore (accounting for 58.39% of total PBIT).  PBIT of Advanced Intermediates segment fell 25.46% to Rs 311.95 crore (accounting for 41.61% of total PBIT). 

PBIT margin of Phenolics segment rose from 10.98% to 12.38%.  PBIT margin of Advanced Intermediates segment fell from 18.74% to 15.20%.  Overall PBIT margin fell from 13.85% to 13.41%. 

Operating profit margin has declined from 15.66% to 14.80%, leading to 12.67% decline in operating profit to Rs 822.16 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.86% to 66.09%.   Purchase of finished goods cost rose from 0.35% to 1.37%.   Employee cost increased from 3.94% to 4.68%.   Other expenses rose from 12.43% to 12.94%.   Power and Oil fuel cost fell from 6.75% to 6.25%.  

Other income rose 62.72% to Rs 56.97 crore.  PBIDT fell 9.96% to Rs 879.13 crore.  Provision for interest fell 63.48% to Rs 7.42 crore. 

PBDT fell 8.83% to Rs 871.71 crore.  Provision for depreciation fell 4.93% to Rs 119.2 crore. 

Profit before tax down 9.42% to Rs 752.51 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 195.49 crore, compared to Rs 212.59 crore.  Effective tax rate was 25.98% compared to 25.59%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 9.88% to Rs 557.04 crore.  

Promoters’ stake was 49.13% as of 31 December 2023 ,compared to 45.72% as of 31 December 2022 . 

The scrip is currently trading at Rs 2141