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Deepak Nitrite Ltd.

BSE: 506401 | NSE: DEEPAKNTR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE288B01029 | SECTOR: Chemicals

BSE Live

Jul 30, 15:53
2038.75 139.80 (7.36%)
Volume
AVERAGE VOLUME
5-Day
120,882
10-Day
84,496
30-Day
88,165
401,600
  • Prev. Close

    1898.95

  • Open Price

    1980.00

  • Bid Price (Qty.)

    2038.75 (15)

  • Offer Price (Qty.)

    2038.75 (5)

NSE Live

Jul 30, 15:59
2039.20 138.35 (7.28%)
Volume
AVERAGE VOLUME
5-Day
708,603
10-Day
657,484
30-Day
1,096,238
6,873,158
  • Prev. Close

    1900.85

  • Open Price

    1970.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    2039.20 (1028)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

Dear Stakeholders, I am delighted to address you on yet another successful year for Deepak Nitrite. Our strategy in FY 2010-11 was aimed at entering new business segments and strengthening our presence in existing markets. I am happy to report that your Company achieved success in these efforts and delivered robust performance in all business segments. This has given us impetus to dream bigger and aim higher. Considering the overall performance, the Board of Directors has recommended a dividend of Rs. 6 per equity share of face value of Rs. 10 each. The global economy posed major challenges in FY 2010-11. Developed countries reported improvement in economic indicators, largely on account of government stimulus packages. However, there was also an upsurge in commodity prices, especially in emerging market economies. There were concerns regarding the sovereign debt of some European countries. Political unrest in the Middle East, catastrophes in Japan and fast changing weather patterns added to the complications and made the overall business environment more unpredictable than ever. Your Company successfully met these challenges. We have a broad-based product mix catering to varied applications and industries and hence we can address uncertain and volatile market conditions with some ease. Leveraging our competencies, our strategy in FY 2010-11 was to achieve growth in the fuel additives market, continue with our expansion plans at Dahej, and penetrate difficult markets like USA and China. In terms of segmental growth, we wanted to better our performance compared to previous years. I am proud to state that your Company not only met but exceeded its targets with respect to these strategies. New Product Horizons We are one of the few players in India to capitalise on the demand for fuel additives and this market has become an important business segment for us. All our products for this market, encompassing petrol, diesel and aviation turbine fuel blending applications are doing well. Apart from fuel additives, which were introduced in FY 2009-10, we have launched some other products that, we are confident, will be equally successful. You will be pleased to note that over 50% of your Company''s incremental revenues in FY 2010-11 came from sale of products introduced in the last two years. New Market Horizons Another significant aspect of our performance in FY 2010-11 was the progress made in widening and strengthening our diversified geographical reach. While Europe has historically been a good market for us, we have recently taken steps to increase our presence in USA and China. Our success was due to acceptance of our products by our esteemed customers. Our products enjoy competitive advantage due to superior quality backed by sustainable after-sales support. China is renowned for its low cost manufacturing capabilities. Our ability to derive revenues from this market speaks volumes about our global cost competitiveness and value proposition. Another feather in our cap was registration of our products under the European Union''s REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulation. This will strengthen our long-term relationships with European buyers. In the Indian market, our products flourished and our businesses reported growth of 34% in FY 2010-11. While our export revenues increased in absolute terms by 14%, the share of revenues from the domestic market increased from 53% in FY 2009-10 to 57% in FY 2010-11 due to strong performance in all segments. We foresee good growth in both the markets. We derive much strength from the fact that the Indian economy continues to grow rapidly, and is expected to register around 9% annual growth in the coming years. This will help further development of your Company''s domestic business. New Financial Horizons Your Company has greatly improved its financial strength. On the operating side, we have been able to significantly reduce our interest cost despite steadily increasing interest rates. Our net debt to equity ratio stands at 0.25 as on March 31, 2011. We have also steadily increased net worth, thereby sharing our progress with all our stakeholders. Our stronger financial position backed by low leverage will enable us to finance our expansion plan, cost-effectively. New Manufacturing Horizons Let me share some exciting information about our expansion plans, which will open up new horizons for us. In our Greenfield expansion at Dahej, we are setting up facilities for manufacture of a performance chemical, which will be a forward integration of one of our existing fine and speciality chemicals. The project has a capital outlay of around Rs. 150 crore. We are well on course to complete this project on schedule. We are also excited about our Brownfield expansion at Nandesari in Gujarat which will be completed in the first half of FY 2012-13. This investment is aimed at expanding our inorganic-intermediates business. I can proudly say that your Company is on course to exceed revenue earnings of Rs. 1,000 crore within next three years. To conclude, I would like to reiterate that we ended FY 2010-11 on an extremely positive note. Our strategies for opening new horizons were successful and all our businesses performed well. Our commitment to work ethics, research & development, environmental standards, safety norms and community services remained unstinted. I appreciate the hard work put in by our employees and the support of all our stakeholders, which has greatly contributed to our success and am confident that it shall be always available in our endeavour to place ourselves on a path of rapid growth. Best wishes, D. C. Mehta Vice Chairman & Managing Director