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Chemicals maker Deepak Nitrite on Monday posted nearly four-fold jump in its consolidated net profit to ₹156.71 crore for the third quarter of the current financial year, on robust sales.
It had clocked a net profit of ₹39.70 crore during the October-December quarter of the previous financial year, according to a BSE filing.
The company’s net income on a consolidated basis jumped significantly to ₹1,134.52 crore during the third quarter of 2019-20 as compared with ₹767.72 crore in the year-ago.
Expenses rose to ₹923.71 crore in the December 2019 quarter from ₹767.72 crore a year ago, the filing added.
Deepak Nitrite CMD Deepak C Mehta said, “Our profitability increased manifold.”
Deepak Phenolics, which was established last year, performed well in terms of volumes. However, as a commodity product, it is susceptible to the global cycle of slowing economic growth and impact of input prices that have suppressed the margins. It is hoped that the commodity cycle will improve in the latter half of the next financial year, he said.
“Given the robust business visibility, we are planning expansions across all business segments to further foster our performance,” Mehta added.
Gujarat-based Deepak Nitrite 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.
Its shares rallied 8.50 per cent to close at Rs 409.30 a piece on the BSE on Monday.
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