For the October-December quarter (Q3FY20), the company posted a solid performance as the results for all the three segments in their base business remained strong, while the phenol-acetone manufacturing subsidiary Deepak Phenolics, clocked record quarterly turnover on the back of high utilization levels.
Supported by strong volume growth due to production efficiencies and recalibration of product mix, the company’s total revenue during the quarter under review grew 36 per cent year on year (YoY) at Rs 1,120 crore. Consolidated net profit jumped more than three-fold to Rs 157 crore from Rs 48 crore in Q3FY19.
The management said China, which enjoys a dominant position in the market, has been deemphasizing manufacturing of chemicals and high-complexity products. Further, global customers are also seeking to establish operations in alternate markets
other than China for which India is better placed.
Uncertainties caused by the coronavirus are exacerbating the concerns around China. This is a tailwind for the speciality chemical industry and Deepak Nitrite
is well placed and endeavours to continue to build upon its success in recent years, it added.
"The company is secure on the raw materials front, since it sources most of its raw materials locally and has a well-integrated facility. It has also undertaken positions to ensure that supply of imported raw materials are covered for the current quarter causing no disturbance to operations as a result of the developments in China," the management said.
At 11:39 am, Deepak Nitrite was trading 3 per cent higher at Rs 521 on the BSE, as against a 0.08 per cent rise in the Sensex. A combined 1.47 million shares have changed hands on the counter on the NSE and BSE so far.