Deepak Nitrite - Q1 FY 19 RESULTS REVIEW

Deepak Nitrite

Q1 FY 19 RESULTS REVIEW 

Deepak Nitrite Limited Has manufacturing facilities at Nandesari & Dahej in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad; 

product portfolio of Basic Chemicals (BC), Fine & Speciality Chemicals (FSC) & Performance Products (PP). 

Has announced its financial results for the quarter ended June 30, 2018.

Q1 FY2019

 Revenue at Rs. 421.82 crore compared to Rs. 316.85 crore (excluding Fire and loss of profit insurance claim of Rs. 22.5 crore) reported in Q1 FY18, UP 33% yoy.

·       Basic Chemicals witnessed improving demand and pricing for key products,

·       Fine & Speciality Chemicals saw strong traction especially in export markets.

·       The Performance products segment has also delivered an encouraging performance on the back of strategic initiatives implemented earlier.

 EBITDA at Rs. 56.89 crore, higher by 66% as against  Rs. 34.17 crore (excluding Rs. 18.33 crore  due to insurance claim) reported in Q1 FY18.

EBITDA margins improved to 13.5%, as compared to 10.8% in Q1 FY18.

 PBT at Rs. 33.36 crore in Q1 FY19, a growth of 170% over Rs. 12.38 crore in the same period last year.

However, the figures of Q1 FY18 may not be fully comparable as it had an impact of incident of fire at Roha.

 PAT grew by 169% to Rs. 21.78 crore in Q1 FY19 as compared to Rs. 8.10 crore in Q1 FY18.

 EPS for Q1 FY19 stood at Rs. 1.60 per share (face value Rs. 2 each) on an enlarged capital base compared to Rs. 1.54 per share in Q1 FY18.

(QIP: Issuance of 56,81,775 shares of Rs. 2 each at a price of Rs. 264 per share in January, 2018).

Commenting on the performance, Mr. Deepak C. Mehta, CMD said,

“We have been able to successfully pass on rising input costs to customers and have managed to report higher volumes across export and local markets amidst rising oil prices.

The focused initiatives to turnaround the Performance Products segment have also delivered.

FY2019 is set to be a breakthrough year for us as we commission our ambitious mega-Greenfield project of Phenol and Acetone in Dahej in the current month. 

At full capacity, we anticipate that our plant will save the nation close to USD$ 400 million in value of imports saved. 

It is a mega project, aligned with Make in India, to manufacture 200,000 MTPA of Phenol and 120,000 MTPA of the co-product Acetone, supported by capacity to manufacture 260,000 MT of Cumene, which is a feedstock for manufacturing Phenol and Acetone.

In addition to this, our growth during the year will be driven by increase in capacities for select products, buildup of newly introduced product lines and recognising pockets of opportunity due to the shifts in the global supply chain. We are already witnessing escalation in enquiries for existing and new products and are geared up to capitalise on the multiple opportunities ahead.”

Domestic & Exports

 Domestic revenues stood at Rs. 265.05 crore in Q1 FY19 from Rs. 214.95 crore in the same period last year, growing by 23% Y-o-Y. Environmental challenges and production disruptions in China led to volume gains for local customers boosting domestic revenues.

 Revenues from exports came in at Rs. 153.82 crore in Q1 FY19 compared to Rs. 98.36 crore in Q1 FY18, higher by 56%. strong demand trends in key markets across all segments, currency tailwind and stabilisation of operations compared to the same quarter in the previous financial year.

Segmental Performance 

 Revenues from the BC segment stood at Rs. 222.62 crore in Q1 FY19 compared to Rs. 180.44 crore in Q1 FY18, growing by 23% Y-o-Y. Improved demand traction from the domestic customer industries resulted in volume growth of 7% in the BC segment. 

 Revenues from FSC segment were Rs. 122.37 crore in Q1 FY19, higher by 49% compared to Rs. 81.94 crore in Q1 FY18. Revenue growth was backed by solid volume growth of 25% in the FSC segment due to a favourable demand environment in both domestic as well as export markets as well as benefit from a moderate base. 

 The PP segment reported revenues of Rs. 80.51 crore in Q1 FY19 compared to Rs. 60.61 crore in Q1 FY18, a growth of 33% y-o-y.