Deepak Nitrite's wholly owned subsidiary, Deepak Chem Tech, has signed a memorandum of understanding with the Gujarat government to invest Rs 5,000 crore in the next four years to set up projects to manufacture speciality chemicals, phenol/acetone and bisphenol at Dahej/Nandesari in Gujarat.

The company said that the proposed investment is expected to generate around 1,500 direct and indirect employment opportunities. The proposed investment will also help reduce India's import bill, it added.

The products out of these projects will have varied end uses. Speciality chemicals cater to the demand of agrochemicals and pharma industries. Phenol and acetone are used in varied end-user segments like laminates, plywood, pharma, paint, adhesives, etc. Bisphenol caters to epoxy and adhesives and is the most important feedstock towards polycarbonate which has various applications across automotive, electronic and consumer goods, defense, medical equipment, etc.

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.

Deepak Nitrite's consolidated net profit fell 12.5% to Rs 233.86 crore on 4.8% rise in revenue from operations to Rs 1,961.36 crore in Q4 FY23 over Q4 FY22.

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Deepak Nitrite announced that the Board of Directors of the Company at its meeting held on 11 May 2023, has recommended a Final dividend of Rs.7.50 per share (i.e.375%), subject to the approval of the shareholders.

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Consolidated profit before tax was at Rs 315.15 crore in Q4 FY23, down 13% from Rs 362.19 crore recorded in the corresponding quarter previous year. Total expenses rose 9.58% year on year (YoY) to Rs 1,658.78 crore in the quarter ended 31 March 2023.

EBITDA slipped 13% to Rs 361 crore in the fourth quarter of FY23 as against Rs 414 crore posted in Q4 FY22. EBITDA margin reduced to 18% in Q4 FY23 as compared to 22% reported in the same period a year ago.

During the quarter, the company's revenue from phenolics business rose 3.68% YoY to Rs 1,169.88 crore and advanced intermediates segment revenue grew 6.7% YoY to Rs 800.50 crore.

On full year basis, the company's net profit tumbled 20.1% to Rs 852 crore on 17.2% jump in revenue to Rs 7,972.06 crore in FY23 over FY22.

Deepak C. Mehta, chairman & managing director said, “We have strengthened our market position in several product portfolios and achieved production and delivery volume benchmarks. Despite inflationary pressures in some inputs and utilities, we remain committed to sustainable profitability, focused on people, planet, and profit. We are extending our product portfolio by introducing new products from our R&D pipeline, confident that our growing footprint across established and new chemistries will sustain our momentum. We have efficiently faced challenges, and fulfilled our supply commitments, ensuring a consistent and steady supply of products to customers.

Our large-scale investment plans reflect our enthusiasm to capitalize on the opportunities available both in India and worldwide. We continue to diversify our product offering by introducing novel intermediates, broadening our clientele, and improving the overall value proposition.”

In its outlook, Deepak Nitrite said, “With projects close to Rs 25 billion lined up across its key product lines, DNL is clearly committed to sustained growth and value addition. DNL is well-positioned to achieve incremental gains in both its segments on the back of planned commissioning of key projects slated for the coming year.”

Meanwhile, the firm's board has recommended a dividend of Rs 7.50 per equity share for the year ended 31 March 2023. The dividend, if approved by shareholders at the ensuing AGM, will be paid within 30 days from the date of AGM.

Further, the board of directors of the company has approved the re-appointment of Deepak C. Mehta as the chairman & managing director of the company, for further period of 5 years, with effect from 14 December 2023.

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.

Shares of Deepak Nitrite were up 0.26% to Rs 1,931.55 on the BSE.

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Net profit of Deepak Nitrite declined 12.48% to Rs 233.86 crore in the quarter ended March 2023 as against Rs 267.21 crore during the previous quarter ended March 2022. Sales rose 4.75% to Rs 1961.36 crore in the quarter ended March 2023 as against Rs 1872.35 crore during the previous quarter ended March 2022.

For the full year,net profit declined 20.12% to Rs 852.00 crore in the year ended March 2023 as against Rs 1066.64 crore during the previous year ended March 2022. Sales rose 17.20% to Rs 7972.06 crore in the year ended March 2023 as against Rs 6802.19 crore during the previous year ended March 2022.

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