Deepak Nitrite drops after Q4 PAT declines 8% YoY to Rs 267 crore

5 May 2022 , 10:18 AM

The specialty chemical company reported its highest ever quarterly turnover on the back of formula based pricing, increase in wallet share with large customers and addition of newer customers and geographies.

Profit before tax slipped 7.1% to Rs 362.19 crore in Q4 FY22 from Rs 389.94 crore registered in Q4 FY21. Profitability was dented after total expenses surged by 45% to Rs 1462.02 crore in Q4 FY22 over Q4 FY21. EBITDA declined 10% year on year to Rs 414 crore in the quarter ended 31 March 2022.

On the margins front, EBITDA margin fell to 22% in Q4 FY22 from 31% in Q4 FY21 while net profit margin slipped to 14% in Q4 FY22 from 20% in Q4 FY21.

Among segmental revenue, performance products segment soared 86% to Rs 161 crore in Q4 FY22 over Q4 FY21. Basic Intermediates surged 63% to Rs 399 crore in Q4 FY22 over Q4 FY21. Phenolics segment grew 20% to Rs 1122 crore in Q4 FY22 over Q4 FY21. Revenue from fine & speciality chemicals business rose 14% year on year to Rs 235 crore in Q4 FY21.

The chemical maker reported a 37% jump in consolidated net profit to Rs 1066.64 crore for the financial year ended March 2022 from Rs 775.81 crore posted in the financial year ended March 2021. Net sales surged by 56% to Rs 6802.19 crore in FY22 over FY21. EBITDA grew 30% to Rs 1,646 crore in FY22 over FY21.

Commenting on the performance for Q4 and FY22, Deepak C. Mehta, chairman & managing director said, ?Our FY22 performance encapsulates the heightened resilience and agility in our Business Model as we have scaled new benchmarks in revenues and profitability during the year. This was achieved in the backdrop of sharp inflation in operating costs, higher input prices and disrupted supply chains. Both Revenues and PAT demonstrated significant growth in FY22 on a consolidated basis. We will continue to be nimble to the changing needs and preferences of our customers and deliver solutions. While doing so, we will prudently deploy capital to elevate our market position in the chosen chemistries. Our foray into advanced solvents will diversify our product portfolio, broaden our customer base, and raise the amount of sophisticated, high-margin products in the portfolio, thereby enhancing our business proposition.?

The board of directors recommended dividend of Rs 7 per equity share for the financial year ended 31 March 2022.

Deepak Nitrite is one of the leading suppliers of chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.

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