The result was announced after market hours yesterday, 24 October 2019.

The company reported a record performance in Q2 September 2019 on the back of strong fundamentals for the business. The company has successfully leveraged its manufacturing excellence, world scale, integrated operations and cost competitiveness to emerge as a supplier of choice for marquee global customers. In the backdrop of reverse globalisation, trade wars and a reset in global supply chains for the chemical industry, manufacturers are being evaluated on parameters beyond costs and aspects such as environmental practices, human resource practices, ability to deliver consistently amidst an environment of high volatilityand ability to manage scale have emerged as key determinants. The firm has fared favourably against these parameters towards winning market share.

The company's topline performance was driven by strong growth in both basic chemicals (BC) and performance products (PP) segment, which have benefited from robust demand growth. These segments witnessed an all-round performance across key products and markets. The fine & speciality chemicals (FSC) segment witnessed a stable performance as the company continued to take strategic position on select products enabling higher margins amidst temporary volume moderation.

EBITDA grew sharply to Rs 216 crore, higher by 213% against Rs 69 crore reported in the same period last year. EBITDA margins have expanded to 37.7% compared to 15.9% in the same period of last year.

Due to the reset of global supply chains, there have been demand-supply mismatches in certain products. DNL has benefited by rationalizing production towards those products enjoying high realizations enabling it to deliver robust profitability.

PBT was Rs. 191 crore in Q2 FY20 increasing by 334% over Rs. 44 crore in the same period last year.

In its outlook, the company said it very well positioned to further strengthen its leadership position in the Indian chemicals industry through focus on expanding its expertise across multiple chemistries as well as leveraging its relationships with domestic as well as global clientele.

While BC and PP segment will continue with its growth momentum, FSC segment is expected to deliver an improved performance on the back of new product launches and capacity augmentation.

The company aims to further strengthen its cost leadership position in the market, to drive business momentum on the back of positive demand scenario.

Commenting on the performance, Deepak C. Mehta, chairman & managing director, said, "I am glad to share another strong quarter of performance culminating in a robust first half. We aim to strengthen our business proposition by adding incremental capacities, widening our customer base and enhancing the share of complex, high margin products."

Meanwhile, the S&P BSE Sensex was up 46 points or 0.12% to 39066.33.

On the BSE, 77,340 shares were traded in the counter so far compared with average daily volumes of 45,822 shares in the past two weeks. The stock hit a high of Rs 359.8 and a low of Rs 346.05 so far during the day.

The stock hit a 52-week high of Rs 359.8 on 25 Oct 2019. The stock hit a 52-week low of Rs 204.6 on 26 Dec 2018.

Deepak Nitrite is one of the country's fastest growing chemical companies. It has a diversified portfolio of intermediates that caters to the laminates, coating, adhesives, laminates, auto, adhesives & paints, construction chemicals, dyes, pigments, agrochemical, pharmaceutical, plastics, textiles, paper, home and personal care segments in India and abroad.