you are here:

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 27, 15:56
1905.00 -17.05 (-0.89%)
Volume
AVERAGE VOLUME
5-Day
51,271
10-Day
51,113
30-Day
84,415
68,965
  • Prev. Close

    1922.05

  • Open Price

    1935.80

  • Bid Price (Qty.)

    1907.90 (5)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 27, 15:59
1909.25 -12.55 (-0.65%)
Volume
AVERAGE VOLUME
5-Day
697,120
10-Day
760,060
30-Day
1,129,984
651,804
  • Prev. Close

    1921.80

  • Open Price

    1933.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1909.25 (88)

Annual Report

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

Chairman's Speech

Dear Stakeholders, The year in review was marred by an ongoing strained global environment. While the global economy has showed signs of recovery from the challenging environment of the last three to four years, there is still some way to go. The US economy has demonstrated enough positive momentum for regulators to begin reduction in levels of fiscal intervention; while the performance in Europe remains cautious, with need for further consolidation. Japan embarked on its own expansionary monetary policy to consolidate the initial positive results, while economies like China and Russia witnessed noticeably lower growth. China seems to be shifting its attention more towards domestic consumption than exports. At home, aggressive steps taken by the Finance Ministry to address the twin problems of growing trade deficit and weak rupee, as well as some innovative and forward-looking policies by RBI helped India defend its currency from the impact of global events. All of this serves to remind us that not only has the global economy become increasingly integrated, but heightened volatility in the operating environment is expected to be a permanent feature. Notwithstanding various domestic and global issues, we successfully managed these challenges, thanks to our strong customer-centric approach. We went beyond conventional supplier - customer engagements, creating deeper and meaningful associations with consumers, thereby allowing us to gain greater insights into their requirements. Winning strategies. Sustained growth. Winning strategies involve setting goals and implementing them through concerted action, while mobilising the required resources. Such strategies precipitate the achievement of goals through the means chosen to achieve them. Operations FY 2013-14 has been an exciting year for your Company. Your Company has sustained the growth momentum of the last couple of years, and made progress on important initiatives which will pave the way for continued growth in the years ahead. Your Company has implemented several winning strategies. These strategies include an ability to capture new markets, launch of new products on time, focus on R&D for process improvement and enhancement, and leveraging expertise to build the right chemistry. As a result of these strategic initiatives, revenues have doubled from Rs.546 crores in FY 2009-10 to Rs.1,270 crores in FY 2013-14. Three years ago, in a similar communication to you, I had shared my optimism that your Company was on course to exceed revenues of Rs.1,000 crores by FY 2013-14. As you are all aware, we successfully surpassed this milestone in FY 2012-13 itself. It gives me immense pleasure to state that the growth momentum has continued to be robust. It is greatly satisfying to share with you that the revenues for FY 2013-14 have touched Rs.1,270 crores, with Profit After Tax of Rs.38 crores. Such performance would have been impossible without the trust and faith reposed by all the stakeholders. The Board of Directors is happy to share the success with each one of you and thus recommends a Dividend of Rs.10 per Equity Share of a face value of Rs.10 each. The growth and improved margins have been underpinned by initiatives for operational excellence that your Company has undertaken during the year. The Rupee was highly volatile and weakened against the US Dollar. In spite of this, your Company was able to contain the impact on the input costs and at the same time secure higher realisation on output values. This was possible on account of your Company''s endeavour to increase volumes through constant debottlenecking of capacities, become market savvier, and thereby increase market share. Over the past two years, your Company has successfully implemented the Brownfield expansion plan and Phase I of the Greenfield project to address the growing demand for its products and explore emerging opportunities for growth. Strategy must have continuity. It can''t be constantly reinvented. - Michael Porter Strengthening strategic focus Your Company has commenced the process of realignment of its present business segments into three Strategic Business Units (SBUs) based on customer profile and end-use of products. These SBUs include Bulk Commodities & Chemicals, Fine & Specialty Chemicals and Fluorescent Whitening Agent. Realignment will lead to shifting of certain Organic Intermediaries into Fine & Specialty Chemicals segment and Bulk & Commodity Chemicals segment. End-use products like DASDA will continue to remain in the Fine & Specialty Chemicals division. However, it will ultimately become a part of Fluorescent Whitening Agent segment in the long run. Each of the SBUs will require specific skill-set to optimise performance in line with new segments, business strategies, R&D focus, investment focus and logistics costs. The SBUs will require customised planning, marketing and strategic approach, which will be executed by the SBU Heads who will drive growth and profitability. Each of the designated and empowered SBU Heads brings with him/her vast years of experience and knowledge about the business and industry, as well as demonstrated track record of their passion to excel and innovate in the face of challenges. All of this gives me immense confidence that, together, we will steer the SBUs and the Company to achieve new benchmarks of excellence and prosperity in a socially responsible manner. On this positive note of assurance, I want to emphatically state that we are working closely together and are determined and well-poised to aggressively seize opportunities to further enhance the performance of your Company. We have, during this year, achieved a significant benchmark in our growth, but with our sustained performance, we are sure of achieving many more such milestones in the future. Shareholders Your Company remains sensitised to its Shareholders'' concerns. One of the concerns pertain to lower liquid nature of the Shares at the Stock Exchanges. To ensure higher circulation of Equity Shares in the market and enable investors to derive higher returns on their investment, your Company''s Board has recommended a sub- division of Equity Shares from a face value of Rs.10 per Share into five Shares of Rs.2 each, subject to approval of the shareholders. The last time, shareholders were rewarded by issuing Bonus Shares in the year 1986. Your Company has been delivering healthy performance year-on-year over the last decade. The sustained performance testifies the stakeholders'' valued trust in your Company. To show appreciation for this trust, your Company''s Board of Directors deem that it is an appropriate time for declaring Bonus Shares. The Board has recommended an issue of Bonus Shares in the ratio of 1:1 i.e. one fully paid-up Bonus Share of Rs.2 each for every one Share of a face value of Rs.2, subject to approval of the shareholders. Good corporate governance has been one of the contributing factors in our growth. In keeping with the Companies Act, 2013, we have raised our Corporate Governance benchmarks. We have consistently viewed good corporate governance not as a regulatory requirement but as an essential contributor of our performance. I take this opportunity to express my sincere gratitude to all our stakeholders on behalf of the Board of Directors. I would like to thank our shareholders for their continued support. I personally thank my fellow employees for their unwavering support and valued contribution. Together, we have much to look forward to as we strive to make your Company stronger, so as to scale greater heights as we move into FY 2014-15. Best Wishes, D. C. Mehta Vice Chairman & Managing Director