Shares of Deepak Nitrite dipped 9 per cent to Rs 2,150 on the BSE in Tuesday’s intra-day trade after the company reported a 500 basis points (bps) contraction in its consolidated earnings before interest tax and depreciation and amortisation (EBITDA) margins at 22 per cent in the December quarter (Q3FY22).
The company said that the operating environment was challenging, characterized by rising costs and constraints in supply of inputs. Raw material prices remained elevated together with heightened utility costs including power & fuel.
In Q3 FY22, the company achieved highest-ever top line in a quarter at Rs 1,748 crore, up 41 per cent over the previous year. The continued robust revenue momentum was fueled by solid growth trajectory in Phenolics. This was further supported by gains in BI and PP segment led by positive demand and higher realisation for key products, the company said.
Its profit after tax (PAT) was up 12 per cent at Rs 242 crore from Rs 217 crore in the year ago quarter, on stable operational performance, partly bolstered by sharp reduction in finance costs owing to repayment of high-cost debt.
Deepak Nitrite offers a diversified portfolio that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments and petro derivates intermediates -phenolics, acetone and Isopropyl Alcohol (IPA) in India and overseas.
At 11:21 am, the stock was trading 5 per cent lower at Rs 2,245 on the BSE. In comparison, the S&P BSE Sensex was down 0.48 per cent at 57,217 points. The trading volumes on the counter jumped three-fold with a combined 1.18 million equity shares having changed hands on the NSE and BSE.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU