For the 12 mths ended Mar 19, net sales stood at Rs 1791.92 crore up by 25% YoY. OPM stood at 17.1% up by 420 bps thus resulting in a 66% increase in OP to Rs 305.63 crore. Other income was lower by 77% to Rs 2.60 crore. Interest costs was higher by 6% to Rs 42.85 crore and depreciation was higher by 2% at Rs 52.88 crore. PBT was thus higher by 105% to Rs. 212.50 crore. After considering the EO income of insurance claim money of Rs 18.33 crore in 12 mths ended Mar 18 as compared to Nil for FY 19, PBT after EO stood at Rs 212.50 crore up by 74%. Total tax was higher by 93% to Rs 74.45 crore on YoY. Finally, PAT came in at Rs. 138.05 crore up by 65% YoY.

Consolidated performance for 12 mths ended FY 19

For the 12 mths ended Mar 19, net sales stood at Rs 2699.92 crore up by 61% YoY. OPM stood at 15.3% up by 470 bps thus resulting in a 133% increase in OP to Rs 413.90 crore. Other income was higher by 23% to Rs 15.12 crore. Interest costs was higher by 84% to Rs 83.25 crore and depreciation was higher by 48% at Rs 77.79 crore. PBT was thus higher by 190% to Rs. 267.98 crore. After considering the EO income of insurance claim money of Rs 18.33 crore in 12 mths ended Mar 18 as compared to Nil for FY 19, PBT after EO stood at Rs 267.98 crore up by 142%. Total tax was higher by 196% to Rs 94.32 crore on YoY. Finally, PAT came in at Rs. 173.66 crore up by 120% YoY.

Other updates

The Q4 Mar 19 performance is testament to the strategic choices of products identified for capacity expansion at the start of the fiscal. Apt assessment of market demand enabled DNL to reap benefits from higher realisations across key products even as overall volume growth was 11% yoy.

Domestic revenues stood at Rs. 344.5 crore in Q4 FY19 from Rs. 243.3 crore in the same period last year, delivering strong growth of 42% Y-o-Y. DNL's cost leadership and position as the only backward integrated plant in the world for OBA has enabled it to capitalise on evolving market opportunities for the Performance Products segment due to shutdown of capacities in China.

Revenues from exports came in at Rs. 138.4 crore in Q4 FY19 compared to Rs. 147.3 crore in Q4 FY18. Export performance was flat due to extended production schedules and transit timelines for select products, the impact of which is transitionary in nature. Export revenues are expected to recover in the subsequent quarter

The Company's efforts at running plants at optimum capacities with streamlined processes were more than supported by the developments in the China market, all of which has combined to contribute to the enriched margin profile. This, along with expansion in key building blocks enabled us to cater to higher demand from end user industries resulting in robust topline growth.

Revenues from the BC segment stood at Rs. 249.5 crore in Q4 FY19 compared to Rs. 201.1 crore in Q4 FY18, growing by 24% Y-o-Y. Capacity enhancement undertaken earlier in the fiscal as well as improved realisations for key products enabled the growth momentum in the BC segment

Revenues from FSC segment were at Rs. 121.1 crore in Q4 FY19 compared to Rs. 121.2 crore in Q4 FY18. The performance was flat due to extended production schedules and transit timelines for select products, the impact of which is transitionary in nature. Revenues are expected to recover in the ensuing quarters.

The PP segment delivered strong topline growth of 54% at Rs. 126.0 crore in Q4 FY19 as against Rs. 82.0 crore in Q4 FY18. Strategic initiatives undertaken to reposition the business have yielded results. The Company's position as a fully integrated supplier of OBA have enabled it to capitalise on shifts in the industry landscape resulting in a sharp turnaround in the segment.

Update on Deepak Phenolics

Deepak Phenolics Ltd. (DPL), a wholly-owned subsidiary of Deepak Nitrite Ltd., commenced commercial production at its Mega-Plant of Phenol & Acetone on 1st November, 2018. This facility, aligned with the 'Make in India' initiative of Government of lndia, has capacity to manufacture 200,000 MTPA of Phenol and 120,000 MTPA of its co-product Acetone. This is supported by capacity to manufacture 260,000 MT of Cumene for captive consumption. DPL is well positioned to benefit from strong demand growth in the local market for these products.

Key milestones achieved by Deepak Phenolics Ltd. in Q4 & FY19:

• Turnover of Rs. 537 crore in Q4 FY19; maiden full quarter of operations
• Both plants (Phenol & Cumene) has touched 100% utilisation during the quarter
• Addition of DPL turnover propels cons quarterly turnover past the 1,000 crore mark
• DPL contributes 927 Cr to consolidated turnover of Rs. 2,715 Cr in FY19
• Reported positive EBITDA and PAT in Financial Year 2019, despite commencing ops only 5 mths ago
• DPL contributes 56 Cr to consolidated PBT of Rs. 268 Cr in FY19

Commenting on the performance, Mr. Deepak C. Mehta, Chairman & Managing Director, said,

"The Chemical Industry in India is witnessing an unprecedented growth opportunity largely due to International Events. For a Company like Deepak Nitrite, which is into chemical intermediates, the opportunity stands accentuated as its products support a wide range of industries. In the current scenario, Chemical Intermediates are witnessing a big jump in demand both due to domestic end user industries growing and reduced availability of intermediates from China. We expect the situation to remain conducive for the foreseeable future.

In this backdrop, DNL was able to ensure peak performance in spite of fluctuating availability and pricing of Raw Materials. As a result, fiscal year 2019 has been a defining year as the Company commissioned its mega-Greenfield facility of Phenol & Acetone, elevated the performance of all of its segments and more than doubled Consolidated EBITDA and PAT.

I am happy to report that all of the divisions performed well and the DPL team has done an excellent job not only in ensuring peak plant performance but also in managing the logistics of over 300,000 tonnes of material and maintaining margins inspite of the fluctuating oil prices. On an overall basis, due to various initiatives, we expect to sustain the growth momentum across all segments in the ensuring quarters. "

The Board has recommended a higher dividend of Rs. 2 per share in FY19 amounting to 100% of Face Value to share the benefits of the robust performance and sustain the value creation focus towards all stakeholders."

Outlook

As a leading intermediates player, the Company is well placed to serve the heightened local demand from a wide range of end user industries, which are poised to benefit from International events. Various initiatives are being undertaken including debottlenecking, small expansions and capex to enhance plant efficiencies which will enable the Company to continue the momentum in performance across all the segments, in the quarters ahead.

The Phenol and Acetone plant has started operations well and the objective is to ramp up capacity further. Local production and ready availability of high quality grades of both products should catalyse production of downstream derivatives opening up new frontiers of growth for the Company.