Deepak Nitrite
consolidated net sales increased 70.29% to Rs 1681.35 crore in Q2FY22 compared
to Q2FY21. SBUs of BI, PP and Phenolics
delivered scaled up performance during the quarter benefiting from operating
leverage on account of better operating environment. The FSC segment delivered
stable volumes according to business plan despite constraints to availability
of inputs and challenges with respect to logistics. Sales of Fine &
Speciality Chemicals segment has gone down 5.95% to Rs 197.42 crore (accounting
for 11.57% of total sales). Sales of
Phenolics segment has gone up 108.49% to Rs 1,137.01 crore (accounting for
66.62% of total sales). Sales of Basic
Chemicals segment has gone up 55.33% to Rs 267.49 crore (accounting for 15.67%
of total sales). Sales of Performance
Products segment has gone up 56.34% to Rs 104.78 crore (accounting for 6.14% of
total sales). Inter-segment sales rose
Rs 7.15 crore to Rs 25.35 crore.
Operating profit
margin has declined from 27.92% to 22.99%, due to combination of higher input
prices as well as increased cost of power and logistics leading to 40.20% rise
in operating profit to Rs 386.54 crore.
Raw material cost as a % of total sales (net of stock adjustments) increased
from 51.47% to 62.48%.Employee cost decreased from 5.83% to 4.08%. Other
expenses fell from 15.96% to 10.37%. Power and Oil fuel cost fell from 6.50% to
6.06%.
Other income rose
113.42% to Rs 8.43 crore. PBIDT rose
41.24% to Rs 394.97 crore. Profit before
interest, tax and other unallocable items (PBIT) have jumped 30.73% to Rs
352.54 crore. PBIT of Fine &
Speciality Chemicals segment fell 40.60% to Rs 60.10 crore (accounting for
17.05% of total PBIT). PBIT of Phenolics
segment rose 79.35% to Rs 220.39 crore (accounting for 62.51% of total PBIT). PBIT of Basic Chemicals segment rose 52.87% to
Rs 62.48 crore (accounting for 17.72% of total PBIT). PBIT of Performance Products segment rose
101.47% to Rs 9.57 crore (accounting for 2.71% of total PBIT).
PBIT margin of Fine
& Speciality Chemicals segment fell from 48.20% to 30.44%. PBIT margin of Phenolics segment fell from
22.53% to 19.38%. PBIT margin of Basic
Chemicals segment fell from 23.73% to 23.36%.
PBIT margin of Performance Products segment rose from 7.09% to
9.13%. Overall PBIT margin fell from
27.12% to 20.66%.
Provision for
interest fell 52.78% to Rs 9.24 crore.
PBDT rose 48.31% to Rs 385.73 crore.
Provision for depreciation rose 41.01% to Rs 44.05 crore. Profit before tax grew 49.31% to Rs 341.68
crore. Provision for tax was expense of
Rs 87.34 crore, compared to Rs 58.65 crore.
Effective tax rate was 25.56% compared to 25.63%.
Net profit
attributable to owners of the company increased 49.44% to Rs 254.34 crore.
Equity capital stood
at Rs 27.28 crore as of 30 September 2021 to Rs 27.28 crore as of 30 September
2020. Per share face Value remained same
at Rs 2.00.
Promoters’ stake was
45.69% as of 30 September 2021 ,compared to 45.69% as of 30 September 2020
.
Commenting on the performance, Mr. Deepak C. Mehta,
Chairman & Managing Director, said,
“I’m glad to see the
best of DNL once again brought to the fore in the face of challenges ranging
from COVID, raw material and freight fluctuation and energy costs. This is a
testament to the kind of systems and people we have in place to deliver
sustainable results.
We are embarking on
the next phase of our transformation into a diversified chemical company that
has the dual capability to maintain its leadership position in its existing
value chain while applying itself to innovative new platforms and products. I
anticipate a deeper partnership between Deepak and its strategic customers as
significant volumes of our current and future products are supplied as part of
long term, formula linked arrangements. In the meanwhile, the company will
continue to place a high degree of importance to the twin pillars of process
intensification and operational excellence in a responsible and sustainable
manner.
Growth going forward
will be driven by planned expansion initiatives across SBUs and tactical
introduction of several downstream chemicals and complex chemical platforms. We
remain focused on our agility enabling us to capitalise on opportunities that
emerge from rapid shifts across the industry landscape. Our entry into newer
solvents will diversify our product portfolio, expand our client base, and
increase the percentage of complex, high-margin products in the mix, thereby
enhancing our business proposition."
For year-to-date (YTD) results analysis
Net sales of Deepak
Nitrite has increased 93.01% to Rs 3207.57 crore. Sales of Fine & Speciality Chemicals
segment has gone up 15.64% to Rs 404.35 crore (accounting for 12.42% of total
sales). Sales of Phenolics segment has
gone up 143.69% to Rs 2,135.98 crore (accounting for 65.63% of total
sales). Sales of Basic Chemicals segment
has gone up 62.01% to Rs 516.38 crore (accounting for 15.87% of total
sales). Sales of Performance Products
segment has gone up 56.12% to Rs 198.06 crore (accounting for 6.09% of total
sales). Inter-segment sales rose Rs 9.96
crore to Rs 47.20 crore.
Operating profit
margin has declined from 27.53% to 26.13%, leading to 83.15% rise in operating
profit to Rs 838.04 crore. Raw material
cost as a % of total sales (net of stock adjustments) increased from 50.24% to
59.51%. Employee cost decreased from
7.22% to 4.16%. Other expenses fell
from 15.47% to 10.91%. Power and Oil
fuel cost fell from 6.46% to 5.78%.
Other income rose
59.62% to Rs 16.68 crore. PBIDT rose
82.62% to Rs 854.72 crore. Profit before
interest, tax and other Unallocable items (PBIT) has jumped 79.04% to Rs 794.39
crore. PBIT of Fine & Speciality
Chemicals segment fell 22.46% to Rs 127.51 crore (accounting for 16.05% of
total PBIT). PBIT of Phenolics segment
rose 166.43% to Rs 507.65 crore (accounting for 63.90% of total PBIT). PBIT of Basic Chemicals segment rose 90.90%
to Rs 147.55 crore (accounting for 18.57% of total PBIT). PBIT of Performance Products segment rose
2.28% to Rs 11.68 crore (accounting for 1.47% of total PBIT).
PBIT margin of Fine
& Speciality Chemicals segment fell from 47.03% to 31.53%. PBIT margin of Phenolics segment rose from
21.74% to 23.77%. PBIT margin of Basic
Chemicals segment rose from 24.25% to 28.57%.
PBIT margin of Performance Products segment fell from 9.00% to
5.90%. Overall PBIT margin fell from
26.54% to 24.41%.
Provision for
interest fell 54.45% to Rs 20.18 crore.
PBDT rose 96.95% to Rs 834.54 crore.
Provision for depreciation rose 40.74% to Rs 87.61 crore.
Profit before tax
grew 106.63% to Rs 746.93 crore. Share
of profit/loss were nil in both the periods.
Provision for tax was expense of Rs 189.96 crore, compared to Rs 92.34
crore. Effective tax rate was 25.43%
compared to 25.54%.
Net profit
attributable to owners of the company increased 106.94% to Rs 556.97
crore.
Full year results analysis
Net sales (including
other operating income) of Deepak Nitrite has increased 3.07% to Rs 4359.75
crore. Sales of Fine & Speciality
Chemicals segment has gone up 30.46% to Rs 763.55 crore (accounting for 17.39%
of total sales). Sales of Phenolics
segment has gone up 27.97% to Rs 2,560.50 crore (accounting for 58.31% of total
sales). Sales of Basic Chemicals segment
has gone down 18.84% to Rs 763.17 crore (accounting for 17.38% of total
sales). Sales of Performance Products
segment has gone down 60.35% to Rs 304.18 crore (accounting for 6.93% of total
sales). Inter-segment sales came down
from Rs 63.85 crore to Rs 31.65 crore.
Operating profit
margin has jumped from 24.25% to 28.60%, leading to 21.57% rise in operating
profit to Rs 1,247.03 crore. Raw material cost as a % of total sales (net of
stock adjustments) decreased from 55.85% to 52.05%. Employee cost increased
from 5.16% to 5.65%. Other expenses fell from 14.59% to 13.76%. Power and Oil
fuel cost fell from 6.78% to 6.06%.
Other income fell
38.86% to Rs 21.52 crore. Profit before interest, tax and other unallocable
items (PBIT) has jumped 19.51% to Rs 1,183.80 crore. PBIT of Fine &
Speciality Chemicals segment rose 90.44% to Rs 333.73 crore (accounting for
28.19% of total PBIT). PBIT of Phenolics segment rose 237.71% to Rs 632.57
crore (accounting for 53.44% of total PBIT).
PBIT of Basic Chemicals segment fell 6.92% to Rs 194.87 crore
(accounting for 16.46% of total PBIT).
PBIT of Performance Products segment fell 94.59% to Rs 22.63 crore
(accounting for 1.91% of total PBIT).
PBIT margin of Fine
& Speciality Chemicals segment rose from 29.94% to 43.71%. PBIT margin of Phenolics segment rose from
9.36% to 24.70%. PBIT margin of Basic
Chemicals segment rose from 22.26% to 25.53%.
PBIT margin of Performance Products segment fell from 54.57% to
7.44%. Overall PBIT margin rose from
23.07% to 26.96%.
Provision for
interest fell 35.41% to Rs 74.2 crore.
Loan funds declined from Rs 1,043.24 crore as of 31 March 2020 to Rs
539.34 crore as of 31 March 2021.
Inventories declined from Rs 394.50 crore as of 31 March 2020 to Rs
382.69 crore as of 31 March 2021. Sundry
debtors were higher at Rs 756.30 crore as of 31 March 2021 compared to Rs
612.72 crore as of 31 March 2020. Cash
and bank balance rose to Rs 33.43 crore as of 31 March 2021 from Rs 31.40 crore
as of 31 March 2020. Investments rose to
Rs 189.29 crore as of 31 March 2021 from Rs 2.38 crore as of 31 March 2020
.
Provision for
depreciation rose 9.23% to Rs 152.63 crore.
Fixed assets increased to Rs 2,042.45 crore as of 31 March 2021 from Rs
1,974.18 crore as of 31 March 2020.
Intangible assets increased from Rs 30.07 crore to Rs 41.73 crore.
Profit before tax
grew 29.18% to Rs 1,041.72 crore.
Provision for tax was expense of Rs 265.91 crore, compared to Rs 195.37
crore. Effective tax rate was 25.53%
compared to 24.23%.
Net profit
attributable to owners of the company increased 26.97% to Rs 775.81 crore.
Promoters’ stake was
45.69% as of 31 March 2021 compared to 45.69% as of 31 March 2020 .
Cash flow from
operating activities increased to Rs 999.04 crore for year ended March 2021
from Rs 764.66 crore for year ended March 2020.
Cash flow used in acquiring fixed assets during the year ended March
2021 stood at Rs 209.56 crore, compared to Rs 417.43 crore during the year
ended March 2020.
The scrip is
currently trading at Rs 1898
Deepak Nitrite : Consolidated
Results
|
Particulars
|
2109
(03)
|
2009
(03)
|
Var.(%)
|
2109
(06)
|
2009
(06)
|
Var.(%)
|
2103
(12)
|
2003
(12)
|
Var.(%)
|
Net
Sales
|
1,681.35
|
987.34
|
70
|
3,207.57
|
1661.83
|
93
|
4,359.75
|
4,229.71
|
3
|
OPM
(%)
|
23.0
|
27.9
|
|
26.1
|
27.5
|
|
28.6
|
24.3
|
|
OP
|
386.54
|
275.70
|
40
|
838.04
|
457.33
|
83
|
1,247.03
|
1,025.80
|
22
|
Other
Inc.
|
8.43
|
3.95
|
113
|
16.68
|
10.7
|
56
|
21.52
|
35.2
|
-39
|
PBIDT
|
394.97
|
279.65
|
41
|
854.72
|
468.03
|
83
|
1,268.55
|
1,061.00
|
20
|
Interest
|
9.24
|
19.57
|
-53
|
20.18
|
44.3
|
-54
|
74.2
|
114.87
|
-35
|
PBDT
|
385.73
|
260.08
|
48
|
834.54
|
423.73
|
97
|
1,194.35
|
946.13
|
26
|
Depreciation
|
44.05
|
31.24
|
41
|
87.61
|
62.25
|
41
|
152.63
|
139.73
|
9
|
PBT
|
341.68
|
228.84
|
49
|
746.93
|
361.48
|
107
|
1,041.72
|
806.4
|
29
|
EO
Income
|
0
|
0
|
|
0
|
0
|
|
0
|
0
|
-
|
PBT
after EO
|
341.68
|
228.84
|
49
|
746.93
|
361.48
|
107
|
1041.72
|
806.4
|
29
|
Taxation
|
87.34
|
58.65
|
49
|
189.96
|
92.34
|
106
|
265.91
|
195.37
|
36
|
PAT
|
254.34
|
170.19
|
49
|
556.97
|
269.14
|
107
|
775.81
|
611.03
|
27
|
EPS
(Rs)*
|
#
|
#
|
|
#
|
#
|
|
56.9
|
44.8
|
|
Notes
|
*
EPS is on current equity of Rs 27.28 crore, Face value of Rs 2, Excluding
extraordinary items.
|
#
EPS is not annualised
|
bps
: Basis points
|
EO
: Extraordinary items
|
Figures
in Rs crore
|
Source:
Capitaline Corporate Database
|
Deepak Nitrite : Consolidated
Segment Results
|
|
%
of (Total)
|
2109
(03)
|
2009
(03)
|
Var.(%)
|
%
of (Total)
|
2109
(06)
|
2009
(06)
|
Var.(%)
|
%
of (Total)
|
2103
(12)
|
2003
(12)
|
Var.(%)
|
Sales
|
|
|
|
|
Fine
& Speciality Chemicals
|
12
|
197.42
|
209.9
|
-6
|
12
|
404.35
|
349.67
|
16
|
17
|
763.55
|
585.26
|
30
|
Phenolics
|
67
|
1,137.01
|
545.36
|
108
|
66
|
2,135.98
|
876.53
|
144
|
58
|
2,560.50
|
2,000.86
|
28
|
Basic
Chemicals
|
16
|
267.49
|
172.21
|
55
|
16
|
516.38
|
318.73
|
62
|
17
|
763.17
|
940.32
|
-19
|
Performance
Products
|
6
|
104.78
|
67.02
|
56
|
6
|
198.06
|
126.86
|
56
|
7
|
304.18
|
767.12
|
-60
|
Total
Reported Sales
|
100
|
1,706.70
|
994.49
|
72
|
100
|
3,254.77
|
1,671.79
|
95
|
100
|
4,391.40
|
4,293.56
|
2
|
Less:
Inter segment revenues
|
|
25.35
|
7.15
|
255
|
|
47.2
|
9.96
|
374
|
|
31.65
|
63.85
|
-50
|
Net
Sales
|
|
1,681.35
|
987.34
|
70
|
|
3,207.57
|
1,661.83
|
93
|
|
4,359.75
|
4,229.71
|
3
|
PBIT
|
|
|
|
|
Fine
& Speciality Chemicals
|
17
|
60.1
|
101.18
|
-41
|
16
|
127.51
|
164.44
|
-22
|
28
|
333.73
|
175.24
|
90
|
Phenolics
|
63
|
220.39
|
122.88
|
79
|
64
|
507.65
|
190.54
|
166
|
53
|
632.57
|
187.31
|
238
|
Basic
Chemicals
|
18
|
62.48
|
40.87
|
53
|
19
|
147.55
|
77.29
|
91
|
16
|
194.87
|
209.35
|
-7
|
Performance
Products
|
3
|
9.57
|
4.75
|
101
|
1
|
11.68
|
11.42
|
2
|
2
|
22.63
|
418.62
|
-95
|
Total
PBIT
|
100
|
352.54
|
269.68
|
31
|
100
|
794.39
|
443.69
|
79
|
100
|
1,183.80
|
990.52
|
20
|
Less
: Interest
|
|
9.24
|
19.57
|
-53
|
|
20.18
|
44.3
|
-54
|
|
74.2
|
115.14
|
-36
|
Add:
Other un-allcoable
|
|
-1.62
|
-21.27
|
-92
|
|
-27.28
|
-37.91
|
-28
|
|
-67.88
|
-68.98
|
-2
|
PBT
|
|
341.68
|
228.84
|
49
|
|
746.93
|
361.48
|
107
|
|
1,041.72
|
806.4
|
29
|
|