Anand Rathi
Deepak Nitrite has reported a growth of 21.9% in its standalone revenues at Rs 4,523 million in Q3-FY19 as against Rs 3,711 million in Q3-FY18. The growth was driven better performances by all the segments of the company with Fine & Specialty Chemicals segment posting better growth over other larger Basic Chemicals segment.
During the quarter the company has also posted strong growth in its relatively smaller Performance products segment as a result of various reorientation efforts undertaken by the company over past few quarters.
On the profitability front, the company’s operating margins stood 14.6% at Rs 662 million in Q3-FY19 as against 14.1% at Rs 522 million in Q3-FY18, an improvement of ~50 basis points over same quarter previous year.
The improvement in operating performance was mainly attributable to a combination of higher realisation of products across all business segments, operating leverage and cost rationalisation in operations.
The company’s mega-project is commissioned on November 1, 18 post successful completion of trial runs in the plant. In two months of operation the company has reported revenues of Rs 3,210 million and plant has achieved utilisation of 80%. The management has also indicated that the plant is EBITDA & PBT positive in its first two months of operations itself.
On financial aspects, the project’s crack spreads for Phenol-Acetone as of Jan-19 end stands at around USD 730 per ton. The management has also guided to achieve 90% utilisations in FY20. At 90% utilisation levels and with current spreads this project’s potential revenue generation stands at around Rs 22,000 million.
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