Deepak Nitrite
consolidated net sales increased 16.67% to Rs 1961.65 crore in Q2FY23 compared
to Q2FY22. Sales of Phenolics segment
has gone up 12.93% to Rs 1,284.08 crore (accounting for 65.20% of total sales). Inter-segment sales came down from Rs 25.35
crore to Rs 7.73 crore.
Profit before
interest, tax and other unallocable items (PBIT) has slumped 31.64% to Rs
241.01 crore. PBIT of Phenolics segment
fell 53.42% to Rs 102.66 crore (accounting for 42.60% of total PBIT).
PBIT margin of
Phenolics segment fell from 19.38% to 7.99%.
Overall PBIT margin fell from 20.66% to 12.24%.
Operating profit
margin has declined from 22.99% to 13.81%, leading to 29.93% decline in
operating profit to Rs 270.85 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
62.48% to 71.00%. Employee cost
decreased from 4.08% to 3.85%. Other
expenses rose from 10.37% to 11.88%.
Power and Oil fuel cost rose from 6.06% to 7.12%.
Other income rose
42.82% to Rs 12.04 crore. PBIDT fell
28.38% to Rs 282.89 crore. Provision for
interest fell 36.15% to Rs 5.9 crore.
PBDT fell 28.19% to
Rs 276.99 crore. Provision for
depreciation fell 3.75% to Rs 42.4 crore.
Profit before tax
down 31.34% to Rs 234.59 crore. Share of
profit/loss were nil in both the periods.
Provision for tax was expense of Rs 60.12 crore, compared to Rs 87.34
crore. Effective tax rate was 25.63%
compared to 25.56%.
Minority interest was
nil in both the periods. Net profit
attributable to owners of the company decreased 31.40% to Rs 174.47 crore.
Equity capital stood
at Rs 27.28 crore as of 30 September 2022 to Rs 27.28 crore as of 30 September
2021. Per share face Value remained same
at Rs 2.00.
Promoters’ stake was
45.72% as of 30 September 2022 ,compared to 45.69% as of 30 September
2021.
For year-to-date (YTD) results analysis
Net sales of Deepak
Nitrite have increased 25.32% to Rs 4019.64 crore. Sales of Phenolics segment has gone up 22.61%
to Rs 2,619.01 crore (accounting for 64.92% of total sales). Inter-segment sales came down from Rs 47.20
crore to Rs 14.65 crore.
Profit before
interest, tax and other unallocable items (PBIT) has slumped 29.32% to Rs
561.45 crore. PBIT of Phenolics segment
fell 42.80% to Rs 290.40 crore (accounting for 51.72% of total PBIT).
PBIT margin of
Phenolics segment fell from 23.77% to 11.09%.
Overall PBIT margin fell from 24.41% to 13.92%.
Operating profit
margin has declined from 26.13% to 15.59%, leading to 25.20% decline in operating
profit to Rs 626.83 crore. Raw material
cost as a % of total sales (net of stock adjustments) increased from 59.51% to
68.96%. Employee cost decreased from
4.16% to 3.83%. Other expenses rose
from 10.91% to 12.04%. Power and Oil
fuel cost rose from 5.78% to 6.68%.
Other income rose
29.80% to Rs 21.65 crore. PBIDT fell
24.13% to Rs 648.48 crore. Provision for
interest fell 28.20% to Rs 14.49 crore.
PBDT fell 24.03% to
Rs 633.99 crore. Provision for
depreciation fell 3.80% to Rs 84.28 crore.
Profit before tax
down 26.40% to Rs 549.71 crore. Share of
profit/loss were nil in both the periods.
Provision for tax was expense of Rs 140.62 crore, compared to Rs 189.96
crore. Effective tax rate was 25.58%
compared to 25.43%.
Minority interest was
nil in both the periods. Net profit
attributable to owners of the company decreased 26.55% to Rs 409.09 crore.
Equity capital stood
at Rs 27.28 crore as of 30 September 2022 to Rs 27.28 crore as of 30 September
2021. Per share face Value remained same
at Rs 2.00.
Promoters’ stake was
45.72% as of 30 September 2022 ,compared to 45.69% as of 30 September
2021.
On June 02, 2022, an
incidence of fire occurred around the warehouse section of company`s one of the
manufacturing sites located at Nandesari, Gujarat. This incident led to damage
of certain property, plant and equipment, inventory and has interrupted
business for which the company has completed
all the necessary actions for restoration of the facilities to restart
the operations at full capacity.The
company is adequately insured for reinstatement value of damaged assets and
loss of profits due to business interruption. The company has lodged claim of
this incident with the insurance company and the survey is currently ongoing.
The company has
estimated and recognised an initial loss of Rs 47.20 crore on account of damage
to certain property, plant and equipment & inventory and has recognised insurance
claim receivable to the extent of aforesaid losses. Further, the company is in
the process of determining final claim for reinstatement of assets based upon
estimated cost. The aforementioned losses and corresponding credit arising from
insurance claim receivables has been presented on a net basis (Rs Nil) under
exceptional Items in the above results for the quarter ended June 30, 2022 and
half yera ended September 2022.
The Group has planned
introduction of several downstream chemicals and complex chemical platforms
which shall significantly diversify its operations adding to the existing wide
range of value-added product mix. It has significant presence in value chain
from basic intermediates to fine and speciality products to performance products
through integrated operations with
processes ranging from
manufacturing basic intermediates
to niche and
complex intermediates, leading to high dependency on each other as most
of the products are forward-backward integrated, serving varied end-user
industries across all the geographies. This gives flexibility to focus on
manufacturing products that enjoy encouraging demand and offer better price.
Further, over the period of time, the business scenario and macro-economic
conditions have changed.
The Board of
directors at their meeting held on November 09, 2022 approved investment upto
51% of the equity share capital of Deepak Oman Industries FZC LLC, a company
incorporated in Sultanate of Oman, to set up chemical manufacturing palnt in
Oman of Sultanate.
The scrip is
currently trading at Rs 2110
Deepak Nitrite : Consolidated
Results
|
Particulars
|
2209
(03)
|
2109
(03)
|
Var.(%)
|
2209
(06)
|
2109
(06)
|
Var.(%)
|
2203
(12)
|
2103
(12)
|
Var.(%)
|
Net
Sales
|
1,961.65
|
1681.35
|
17
|
4,019.64
|
3207.57
|
25
|
6,802.19
|
4,359.75
|
56
|
OPM
(%)
|
13.8
|
23.0
|
|
15.6
|
26.1
|
|
23.6
|
28.6
|
|
OP
|
270.85
|
386.54
|
-30
|
626.83
|
838.04
|
-25
|
1,603.58
|
1,247.03
|
29
|
Other
Inc.
|
12.04
|
8.43
|
43
|
21.65
|
16.68
|
30
|
42.61
|
21.52
|
98
|
PBIDT
|
282.89
|
394.97
|
-28
|
648.48
|
854.72
|
-24
|
1,646.19
|
1,268.55
|
30
|
Interest
|
5.9
|
9.24
|
-36
|
14.49
|
20.18
|
-28
|
34.04
|
74.2
|
-54
|
PBDT
|
276.99
|
385.73
|
-28
|
633.99
|
834.54
|
-24
|
1,612.15
|
1,194.35
|
35
|
Depreciation
|
42.4
|
44.05
|
-4
|
84.28
|
87.61
|
-4
|
177.7
|
152.63
|
16
|
PBT
|
234.59
|
341.68
|
-31
|
549.71
|
746.93
|
-26
|
1,434.45
|
1,041.72
|
38
|
EO
Income
|
0
|
0
|
|
0
|
0
|
|
0
|
0
|
|
PBT
after EO
|
234.59
|
341.68
|
-31
|
549.71
|
746.93
|
-26
|
1,434.45
|
1,041.72
|
38
|
Taxation
|
60.12
|
87.34
|
-31
|
140.62
|
189.96
|
-26
|
367.81
|
265.91
|
38
|
PAT
|
174.47
|
254.34
|
-31
|
409.09
|
556.97
|
-27
|
1,066.64
|
775.81
|
37
|
EPS
(Rs)*
|
#
|
#
|
|
#
|
#
|
|
78.2
|
56.9
|
|
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)
|
2209
(03)
|
2109
(03)
|
Var.(%)
|
%
of (Total)
|
2209
(06)
|
2109
(06)
|
Var.(%)
|
%
of (Total)
|
2203
(12)
|
Sales
|
Advanced
Intermediates
|
35
|
685.30
|
544.4
|
26
|
35
|
1,415.28
|
1071.65
|
32
|
37
|
2,511.05
|
Phenolics
|
65
|
1284.08
|
1139.22
|
13
|
65
|
2619.01
|
2138.3
|
22
|
63
|
4303.42
|
Total
Reported Sales
|
100
|
1,969.38
|
1,683.62
|
17
|
100
|
4,034.29
|
3,209.95
|
26
|
100
|
6,814.47
|
Less:
Inter segment revenues
|
|
7.73
|
2.27
|
999
|
|
14.65
|
2.38
|
999
|
|
12.28
|
Net
Sales
|
|
1,961.65
|
1,681.35
|
17
|
|
4,019.64
|
3,207.57
|
25
|
|
6,802.19
|
PBIT
|
Advanced
Intermediates
|
57
|
138.35
|
128.38
|
8
|
48
|
271.05
|
255.92
|
6
|
41
|
595.73
|
Phenolics
|
43
|
102.66
|
220.39
|
-53
|
52
|
290.4
|
507.65
|
-43
|
59
|
867.11
|
Total
PBIT
|
100
|
241.01
|
348.77
|
-31
|
100
|
561.45
|
763.57
|
-26
|
100
|
1,462.84
|
Less
: Interest
|
|
5.9
|
9.24
|
-36
|
|
14.49
|
20.18
|
-28
|
|
34.05
|
Add:
Other un-allcoable
|
|
-0.51
|
2.15
|
-124
|
|
2.76
|
3.54
|
-22
|
|
5.66
|
PBT
|
|
234.6
|
341.68
|
-31
|
|
549.72
|
746.93
|
-26
|
|
1,434.45
|
|