DEEPAK NITRITE FY19Q3 EXCELLENT NUMBERS PAT UP 55%

“FUTURE LARGE CAP DEEPAK NITRITE”

DEEPAK NITRITE AGAIN REPORTED EXCELLENT NUMBERS INSPITE OF PHEONEL AND ACETON PRICES CORRECTING ALMOST 28% TO 33% IN LAST 3 MONTHS.

🔷️FY2019 Revenues were Rs. 457.8 crore in Q3 FY19 compared to Rs. 371.6 crore in Q3 FY18, resulting in a
strong growth of 23% Y-o-Y. Timely assessment of market demand has enabled the Company to optimise benefit from higher realisations across key products in all segments leading to
robust topline growth.

🔷️ EBITDA came in at Rs. 71.7 crore, higher by 36% as against to Rs. 52.7 crore reported in the same period last year. EBITDA margins improved by 150 basis points to 15.7%, as compared to 14.2% in Q3 FY18. Strong EBITDA performance driven by product mix adjustments, which enabled the Company to benefit from improved realisations in key products. Improved EBITDA supported by cost optimisation efforts undertaken.

🔷️PBT stood at Rs. 48.1 crore in Q3 FY19 increasing by 56% over Rs. 30.7 crore in the same period
last year.

🔷️PAT grew by 55% to Rs. 31.6 crore in Q3 FY19 as compared to Rs. 20.34 crore in Q3 FY18.

🔷️EPS for Q3 FY19 stood at Rs. 2.32 per share (of face value of Rs. 2 each) on an enlarged capital base as compared to Rs. 1.56 per share in Q3 FY18.

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

“We are pleased to have sustained our growth momentum in Q3 of this fiscal year with revenues increasing by 23% on a year on year basis. This was due to improved realisations in the domestic market on the back of healthy demand in the end user industries. Favourable shifts in product mix and benefits of operating leverage have propelled PAT higher by 55% yoy.

The turnaround of the Performance Products segment that reported over 50% growth in turnover is heartening. This is an outcome of careful planning and reorientation of focus towards customers and end user industries that are exhibiting steady growth and value the high quality and differentiation in
our offerings.

A development to note during the quarter was the commissioning of our Greenfield facility of Phenol and Acetone. I am delighted to share that we have already stabilised this mega plant and consistently achieved above 80% utilisation in a short span upon commissioning.

Through rigorous efforts undertaken towards seed marketing, creation of complementary supply chain infrastructure and logistics as well as selection of the right team, we have been able to report positive EBITDA and PBT in the first quarter of commissioning itself. I would like to congratulate the entire team at Deepak Phenolics for seamless planning and execution.

This is just the beginning and I am confident that the several exciting opportunities in downstream intermediates will assist us in further elevating our performance in times ahead”.

FUTURE OUTLOOK

The roadmap going forward is encouraging and the Company is well placed to leverage the
opportunities present in the chemicals sector. Abundant availability of locally produced Phenol and Acetone will boost the production of downstream intermediates, which will further diversify the product applications and expand the overall market size in the country.
Established business segments are benefiting from the positive demand environment backed by firm realisations.

On the back of solid quarter on quarter growth performance in the last several quarters and with increasing market opportunities, Deepak Nitrite is expected to continue its growth
momentum.

OUR OLD NOTE

https://wealthcreatures.com/2017/09/05/deepak-nitrate-multibagger-with-quality-this-wealtcreature-will-be-a-boom-in-6-18-months/

https://wealthcreatures.com/2018/08/08/deepak-nitrite-dahej-plant-expected-to-start-in-august/

Disc – All views expressed are personal and for Educational & Study purpose only.Consult your financial advisor before investing.

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