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Leading chemicals firm Deepak Nitrite today reported 53 per cent jump in net profit to Rs 22.69 crore in Q2 FY 18 from Rs 14.8 crore in the same period last year.
Revenues stood at Rs 356.31 crore compared to Rs 307.11 crore in Q2 FY17, representing a growth of 16 per cent.
Revenue growth was driven by the fine & speciality chemicals segment and supported by healthy traction in the performance products segment, which reported topline expansion of 25 per cent and 23 per cent respectively, said a company statement.
Improved demand trend, especially in exports, has enabled the company to report double digit revenue growth, it said.
The company's domestic revenues stood at Rs 208.84 crore in Q2 FY18 from Rs 191.36 crore in the same period last year, representing growth of 9 per cent YoY.
Higher realisation in products in the basic chemicals segment, combined with increase in volumes for products catering to agrochemicals and colourants end user industries, contributed to topline growth in the domestic market. Revenues from exports increased by 27 per cent to Rs 141.6 crore in Q2 FY18 compared to Rs 111.07 crore in Q2 FY17.
"We reported improved profitability in Q2. This has been enabled by healthy demand, especially in export markets in the fine & specialty chemicals segment, improved realisations in the basic chemicals segment and results of steps implemented in the performance products segment.
"The resumption of all units at Roha (Maharashtra) enabled us to deliver balanced growth with contribution from all our segments," Deepak Nitrite chairman and managing director Deepak C Mehta said.
"There was significant volatility in global prices of major chemicals during the quarter. While the prices of inputs have also increased, we have been able to successfully transmit the same," he said.
For a number of products, it has become more difficult to source from China opening up opportunities for our customer base in India which depend upon us to supply basic building blocks. The performance of the basic chemicals segment reflects these trends, he said.
Meanwhile, Deepak Phenolics, the 100 per cent subsidiary of the company, is setting up Rs 1,400 crore project to manufacture 200,000 MTPA of phenol and 120,000 MTPA of the co-product acetone, which is expected to commissioned in the last quarter of the current financial year.
The phenol mega-project is progressing on schedule and remains on track to be commissioned in the last quarter of the current fiscal.
Till date, the company has invested Rs 865 crore. Overall, more than Rs 1,075 crore has been committed for implementation of this project, the release said.
The proposed phenol plant will be located at Dahej in Gujarat with a capital expenditure of Rs 1,400 crore, being funded by debt and equity in the ratio 60: 40, it said.
"Once commissioned, this project will allow us to scale up operations while opening up new avenues for growth and diversification," Mehta said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)