Deepak Nitrite may touch Rs 346: Anand Rathi

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26 Aug, 2025 12:21

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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 1st Nov-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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