Deepak Nitrite Q3 PAT at Rs55.3mn

Deepak Nitrite Q3 revenues of Rs1.43bn were lower by 5% when compared to revenues of Rs1.5bn in Q3 FY09.

Jan 28, 2010 01:01 IST India Infoline News Service

Deepak Nitrite Ltd. (DNL), a leading manufacturer of organic,inorganic, fine & specialty chemicals and preferred business partner of global chemicalcompanies, has announced its financial results for the quarter ended December 31, 2009.

Financial Highlights

Revenues for Q3 FY10 of Rs1.43bn were higher by 12% when compared torevenues of Rs1.27bn in Q2 FY10. On a corresponding quarter basis, revenues forQ3 FY10 of Rs1.43bn were lower by 5% when compared to revenues of Rs1.5bn in Q3 FY09.

EBITDA for Q3 FY10 is Rs110.1mn against Rs119mn in Q3 FY09.

Interest cost for Q3 FY10 is lower by 63% at Rs15.5mn against Rs41.7mn in Q3FY09.

The company reported a PBT of Rs80.2mn for Q3 FY10 when compared to Rs41mn in Q3 FY09. PBT for the quarter includes a one time income of Rs19mn onsale of premises. Excluding this gain, PBT for Q3 FY10 was higher by 49.2% at Rs61.2mn.

Deepak Nitrite Ltd. has announced its results for Q3FY10. Revenues of Rs1.43bn in Q3 FY10 were higher by 12% when compared to revenues of Rs1.27bn in Q2 FY10. The company was able to drive savings in Interest cost which was lower by 63% at Rs16mn in Q3 FY10 compared to Rs41.7mn in Q3 FY09. The company reported a PAT of Rs55.3mn for the quarter which was 100% higher than Rs27.6mn in Q3 FY09. PAT for the quarter includes a one time income of Rs19mn on sale of premises. Excluding this gain, PAT for Q3 FY10 was Rs36.3mn, an increase of 31.5% from Rs27.6mn in Q3 FY09.

MD’s message

Commenting on the results, Deepak C. Mehta, Vice Chairman & Managing Director,said, “Our results reflect the steady progress that we have made in our business over the last few quarters. We have increased volumes over the last year, introduced some new products,improved efficiencies in operations and have managed cash flows better. All of this has led to improved profitability.

We remain confident in our prospects over the longer term as we expand our product portfolio with products developed in-house, deepen our engagement with customers and suppliers and endeavour to enter new markets.”

Operating Highlights

The company has been able to increase volumes during 9M FY10 when compared to the corresponding period of last year. However, due to the situation prevailing in 9M FY09,selling prices for the company’s products were markedly higher owing to global supply disruptions. This has resulted in a situation of lower absolute revenues despite higher volumes in 9M FY10.

The company has introduced a range of fuel additives products. The company expects the annualised turnover from these products will be in the range of Rs750mn-1bn per annum after the operations are stabilised.

Outlook

The company is expanding its hydrogenation capacity by 50%. The full year impact ofthis expansion will be reflected in FY11.

DNL has taken effective steps in the Nitro Toludines (NT) segment to increase its marketshare in the export market & have accordingly enhanced production capabilities, theeffect of which will be realised in the near future

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