Companies

Deepak Nitrite standalone Q2 net up 44%

Our Bureau Ahmedabad | Updated on November 02, 2020 Published on November 02, 2020

Focus on exports, speciality chemicals help faster recovery from the lockdown quarter

Increased focus on exports and robust performance in fine and speciality chemicals have lifted the second quarter revenues for Deepak Nitrite Limited (DNL).

After facing a sharp dip in the standalone revenues due to Covid-19 lockdown in the first quarter, DNL reported revenues from operations at ₹ 445 crore for the second quarter ending September 2020, which is about 27 per cent higher than ₹ 350 crore reported in the preceding quarter ended in June 2020, which had a larger part under the lockdown.

Company’s standalone net profit stood at ₹ 92 crore for the quarter under review, which is about 44 per cent higher than ₹ 64 crore reported in the first quarter.

Deepak Nitrite informed that volume demand inched back toward normal from key end segments after facing a sharp dip in the first quarter of 2020-21, during which the production was affected for about a month.

The company also increased focus on the export market. All the strategic business units (SBUs) rebounded strongly to report double-digit growth, Deepak Nitrite informed in a statement.

Deepak Mehta, Chairman & Managing Director, said, “Inspite of several challenges, the Company could achieve stellar performance on a consolidated basis. DNL’s performance and attractiveness is highly influenced by its breadth and depth of products and process competency. While in the near term, investments that increase our competitiveness will start bearing fruit, the Company continues to broaden its range of products as well as invest into value addition.”

On consolidated basis, company’s revenues from operations stood at ₹ 987 crore, which is about 46 per cent higher than ₹ 674 crore reported in the previous quarter.

Consolidated net profit also jumped by 71 per cent to ₹ 170 crore for the quarter under review as compared to ₹ 99 crore reported in the previous quarter.

“Despite higher imports, DPL delivered sustainable production in excess of 100% of capacity and identified key export markets in lieu of domestic demand,” it stated.

Deepak Nitrite stock traded negative on Monday at ₹ 718.95 after slipping about 3 per cent on BSE.

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Published on November 02, 2020
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