Deepak Nitrite Ltd today said its net profit grew by 32 per cent to Rs 20.10 crore in the first quarter ended June 30 from Rs 15.20 crore in same period of the last year. Revenues stood at Rs 361.63 crore as compared to Rs 339.39 crore in Q1 FY17, representing a growth of 7 per cent, a company statement said here. The basic chemicals and performance products segments reported growth in volume, offsetting the impact on the fine & specialty chemicals (FSC) segment due to non-availability of the company's Roha facility (in Maharashtra) for part of the quarter, it said. Revenues were stable on YoY basis. Domestic revenues, excluding excise duty, stood at Rs 214.96 crore in Q1, up from Rs 183.42 crore in the same period last year, clocking a growth of 17 per cent. The company reported volume growth in key product categories on the back of sustained demand from end user industries, the release said. Revenues from exports came in at Rs 98.34 crore, down from Rs 130.77 crore in Q1 FY17. This was due to an incident at the Roha facility, which impacted capacity availability to manufacture FSC intermediates, largely for the export market. "We have started the year (FY18) on a positive note with encouraging demand trends across key product categories supported by better profitability in basic chemicals segment. "During the quarter, we faced supply constraints in certain raw materials, which were resolved internally - thereby limiting impact on EBITDA margin.
We expect this impact to normalise in the ensuing quarter," Deepak Nitrite chairman and managing director Deepak Mehta said. The company is setting up a phenol and acetone manufacturing unit. The facility will manufacture 2,00,000 MTPA of phenol and 1,20,000 MTPA of the co-product acetone, the statement said. This will be supported by capacity to manufacture 2,60,000 MT of cumene, a feedstock for making phenol and acetone. This project, coming up at Dahej in Gujarat, is being implemented by a 100 per cent subsidiary, Deepak Phenolics. The plant is being built with a capital expenditure of Rs 1,400 crore and funded by debt and equity in the ratio 60:40, the statement added.
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