Deepak Nitrite gains after good Q4 result

Deepak Nitrite rose 1.55% to Rs 72.15 at 12:03 IST on BSE after net profit rose 35% to Rs 20.56 crore on 1.7% rise in net sales to Rs 335.83 crore in Q4 March 2016 over Q4 March 2015.

The result was announced after market hours yesterday, 9 May 2016.

Meanwhile, the BSE Sensex was down 27.41 points, or 0.11%, to 25,661.45

On BSE, so far 77,808 shares were traded in the counter, compared with an average volume of 30,350 shares in the past one quarter. The stock hit a high of Rs 75.50 and a low of Rs 71.40 so far during the day. The stock hit a 52-week high of Rs 79.90 on 23 December 2015. The stock hit a 52-week low of Rs 54.50 on 8 September 2015. The stock had outperformed the market over the past one month till 9 May 2016, gaining 4.18% compared with 4.11% rise in the Sensex. The scrip also outperformed the market in past one quarter, gaining 15.62% as against Sensex's 6.94% rise.

The small-cap company has an equity capital of Rs 23.26 crore. Face value per share is Rs 2.

Deepak Nitrite's earnings before interest, taxation, depreciation and amortization (EBITDA) improved by 24.9% to Rs 46.63 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin increased by 250 basis points to 13.7% in Q4 March 2016 over Q4 March 2015 due to further improvement in product mix towards higher value products, strong growth in contribution of the fine and specialty chemicals segment and stable spreads in some of the key products in bulk chemicals and commodities segment. Cost management initiatives have also supported the improved profitability profile, Deepak Nitrite said.

Deepak Nitrite said that the outlook for the financial year ending 31 March 2017 (FY 2017) is promising, as the company continues to deliver value-led growth in all the three strategic business units of bulk chemicals and commodities, fine and speciality chemicals and fluorescent whitening agents. Stability in crude oil prices would further support this momentum, the company said.

Deepak Nitrite is a multi-division and multi-product chemicals manufacturing company with manufacturing facilities at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad in Andhra Pradesh.

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