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Deepak Nitrite dips 9% on margins disappointment in December quarter

In Q3FY22, its PAT was up 12 per cent at Rs 242 crore, on stable operational performance, partly bolstered by sharp reduction in finance costs owing to repayment of high-cost debt.

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SI Reporter  |  Mumbai 

Deepak Nitrite dips 9% on margins disappointment in December quarter

Shares of dipped 9 per cent to Rs 2,150 on the BSE in Tuesday’s intra-day trade after the company reported a 500 basis points (bps) contraction in its consolidated earnings before interest tax and depreciation and amortisation (EBITDA) margins at 22 per cent in the December quarter (Q3FY22).

The company said that the operating environment was challenging, characterized by rising costs and constraints in supply of inputs. Raw material prices remained elevated together with heightened utility costs including power & fuel.

In Q3 FY22, the company achieved highest-ever top line in a quarter at Rs 1,748 crore, up 41 per cent over the previous year. The continued robust revenue momentum was fueled by solid growth trajectory in Phenolics. This was further supported by gains in BI and PP segment led by positive demand and higher realisation for key products, the company said.

Its profit after tax (PAT) was up 12 per cent at Rs 242 crore from Rs 217 crore in the year ago quarter, on stable operational performance, partly bolstered by sharp reduction in finance costs owing to repayment of high-cost debt.

offers a diversified portfolio that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments and petro derivates intermediates -phenolics, acetone and Isopropyl Alcohol (IPA) in India and overseas.

At 11:21 am, the stock was trading 5 per cent lower at Rs 2,245 on the BSE. In comparison, the S&P BSE Sensex was down 0.48 per cent at 57,217 points. The trading volumes on the counter jumped three-fold with a combined 1.18 million equity shares having changed hands on the NSE and BSE.

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First Published: Tue, January 25 2022. 11:30 IST
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