Standalone net profit soared 105.6% to Rs 116.26 crore on an 8.1% rise in net sales to Rs 525.24 crore in Q4 March 2020 over Q4 March 2019. PBT surged 83.5% to Rs 159.71 crore in Q4 March 2020 over Q4 March 2019. Total tax expenses rose 42.6% to Rs 43.45 crore in Q4 March 2020.

The company said revenue growth was impacted due to 10 days of lockdown in March. Performance was led by realisation gains in both fine & speciality chemicals (FSC) and performance products (PP) segment.

Standalone EBITDA stood at Rs 185 crore in Q4 March 2020, higher by 67% when compared to Rs 111 crore in the same period last year. Robust EBITDA growth is due to ability to capitalise on favourable pricing environment for products across segments. EBITDA margin improved to 35.2% in Q4 March 2020 from 22.7% reported in Q4 March 2019.

Revenues from the domestic market stood at Rs 264 crore in Q4 March 2020, declining 23.48% from Rs 345 crore reported in the same period last year. Deepak Nitrite said that in order to take advantage of favourable pricing in global markets, some part of volumes were diverted towards exports. Further, some revenue de-growth is attributable to shutdown of manufacturing capacity for 10 days in March 2020 as a result of national lockdown.

Revenues from exports were at Rs 257 crore in Q4 March 2020, soaring 86.23% from Rs 138 crore in Q4 March 2019. This was driven by robust demand for key products in the FSC and PP segment in export markets coupled with favourable trend in realisation.

Commenting on the performance, Deepak C. Mehta, chairman & managing director, said, "We have ticked all boxes with volume growth, improved realisations as well as cost control. This was further supported by reduced finance costs and a favourable rate of corporate tax. The growth in the fourth quarter could have been slightly higher as we lost 10 days of production due to the national lockdown. We have re-commenced manufacturing operations in a phased manner based on approvals from local authorities and steadily increasing utilisation levels while exercising tight control over costs. We are well positioned to rebound quickly as the operating environment stabilizes. In addition to capitalising on demand for intermediates in domestic and international markets, we are working on plans to forward integrate into downstream derivatives of phenol and acetone, of which, the first project for IPA has already commenced commercial production."

In its outlook, the company said that the disruption caused by COVID-19 is expected to have significant economic impact both locally and internationally. Production, sales and profits of the company may be impacted adversely in the short term due to the pandemic. The company, however, believes that demand & supply of products will reach the pre-lockdown levels in due course of time.

The company said it has a strong balance sheet and cash position and believes that there is no impact on its ability to meeting its liabilities as and when they fall due. As of 31 March 2020, the debt equity ratio for is 0.14x on a standalone basis and 0.69x on a consolidated basis.

Deepak Nitrite makes chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.