Key Highlights

International events are working favourable for India. Heightened level of opportunity with organic growth and replacement of demand from China is aiding better volumes and margins.

Higher demand from domestic market as well is visible.

Deepak Phenolics (DP) already achieved quick ramp up of 80% capacity utilization. Indicates further scaling up going forward. Rs 533 crore of sales in 5 mths with PAT positive.

All business verticals are performing well.

OBA performed well due to complete backward manufacturing facility. Prolonged shut down in facilities in China also aided better margins. Expects higher prices will continue to remain till Sep 19 atleast which will aid the company. Chinese manufactures are having rough and tough time.

Growth trajectory is strong and the company is entering FY 20 with positive outlook. Expects much improved performance in all the segments in FY 20.

Debt equity 1.11, lower than expected

The company has plans for further derivatives of Phenol and Acetone going forward. 35% of Phenol and Acetone will be consumed captive for high value derivatives in future.

No pressure on margins or on any reduction in spreads in coming years.

Expand capacities due to higher demand. Overall capex Rs 200 crore for Deepak Nitrite and on Rs 100 crore in Phenol side.

Not importing any raw material from China. So any Chinese related issues which other companies are facing are not applicable to the company.

Working with reputed agro chemical companies worldwide which will result in further increasing offtake going forward. The company is also working with one of global Pharma company for some intermediates on anti HIV segment. Not much details being shared as its too early to discuss.