Deepak Nitrite Q4 PAT up 68.37% at Rs290.11cr on better inventory handling and lower finance costs

Deepak Nitrite Ltd reported 38.62% yoy growth in consolidated sales revenues for the Mar-21 quarter at Rs1,463.23cr. In terms of growth in specific verticals, Deepak Nitrite saw a sharp growth of 77% in its largest Phenolics business at Rs937cr. Among the other business lines that showed growth in the quarter, the company reported 30% growth in the fine and specialty chemicals vertical to Rs206cr.

The growth in the basic chemicals verticals was more subdued at 8.7% at Rs245cr in the Mar-21 quarter. The only product vertical to see negative growth on a yoy basis was the performance chemicals business which almost halved in top line to Rs86cr.

The consolidated operating profit for the Mar-21 quarter improved by 76.31% to Rs398.20cr. The sharp growth in operating profits was due to a 4-fold growth in the EBITDA of the phenolics business during the Mar-21 quarter. The OPM was up from 21.40% in the Mar-20 quarter to 27.21% in the Mar-21 quarter. OPM was also higher on sequential basis.

The net profit grew at 68.37% in the quarter. The growth came from better inventory management as well as lower finance cost. The net profit margins improved from 16.32% in the Mar-20 quarter to 19.83% in the Mar-21 quarter. The net margins also improved on a sequential basis compared to 17.54% in the Dec-20 quarter.          

Financial highlights for Mar-21 compared yoy and sequentially