Deepak Nitrite Q3 net profit up 12%

Revenues fell by 9% from Rs 338.44 crore; company attributes slide to fall in price of crude

Vadodara-based chemical manufacturer Deepak Nitrite Limited (DNL) posted 12 per cent rise in net profit for the third quarter of the current financial year, the company informed the Bombay Stock Exchange (BSE) in a filing on Thursday.

DNL's net profit for the third quarter of 2014-15 stood at Rs 12.73 crore, 12.25 per cent higher compared to Rs 11.35 crore in the corresponding period of the last financial year.  

The third quarter revenues fell by nine per cent from Rs 338.44 crore in the third quarter of 2013-14 to Rs 306.34 crore in the recently-ended quarter of 2014-15.

The company attributed the impact on growth in revenues to fall in price of crude and related products and its fallout on customers across the value chain.

Commenting on the results, Deepak Mehta, vice-chairman and managing director, DNL, said, "The sharp fall in the international prices of crude oil has resulted in significant uncertainty across the entire chain. This has compressed demand for our products from our customers as they are currently re-evaluating strategies to minimise the operational impact of this development. As a result, the performance in Q3 of this fiscal has been subdued and would have moderated even further had it not been for the steadily increasing volumes in the FWA segment."

The company said "Some of the chemicals in the BCC segment witnessed a compression in demand causing drop in sales. However, the FSC segment continued to do well and the continued ramp-up in the FWA segment has contributed to growth."

The company plans to raise an amount up to Rs 200 crore by way of Qualified Institutional Placement (QIP) of equity shares.

Deepak Nitrite manufactures Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC) and Fluorescent Whitening Agents (FWA) and has manufacturing facilities at Nandesari in Vadodara and Dahej in Bharuch in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad in Andhra Pradesh.