Deepak Nitrite Q4 profit at Rs 15.23 crore

Revenue for the fourth quarter fell to Rs 332.48 cr versus Rs 360.61 in Q4FY14

Sharp fall in global prices of crude oil and related petroleum intermediates in the third quarter of the last financial year dented fourth quarter net profit of chemical manufacturer Deepak Nitrite Limited (DNL). The Vadodara-based company posted a net profit of Rs 15.23 crore in Q4FY15 compared to Rs 15.86 crore in Q4FY14, a marginal slide of 4%.

Revenue for the fourth quarter of 2014-15 too witnessed a fall. It stood at Rs 332.48 crore in Q4FY15 compared to Rs 360.61 in Q4FY14.

Meanwhile, on a yearly basis, the company posted a 39% rise in net profit to Rs 53.44 crore in 2014-15 compared to Rs 38.31 crore in 2013-14. The company attributed this to steady increase in volumes in the Fluorescent Whitening Agents (FWA) segment and a mix of volume growth and higher realisation for select products in Bulk Chemicals & Commodities (BCC) and Fine & Speciality Chemicals (FSC) business segments.

Revenues also rose by 4.5% and touched Rs 1,327.16 crore for FY15 compared to Rs 1,269.63 crore in FY14. Exports, the company said, grew by 4.5% contributing Rs 524.54 crore while domestic revenues grew 4.2% and touched Rs 787.33 crore.

Commenting on the results, Deepak Mehta, vice-chairman and managing director, said, "Despite the impact of adverse externalities in the second half of the year, we delivered a healthy performance in FY15. We are encouraged by the steady growth in volumes through increased off-take in the FWA segment. The realignment of the business into focussed SBUs at the start of the year has also proven beneficial."

"Going forward, we are positioned to benefit from sustained demand for our value added product portfolio within our established businesses segment. We also expect further improvement in export volumes of Optical Brightening Agents (OBA) as our marketing efforts over the last few quarters have started delivering," he added.

On the proposed project for manufacturing phenol and acetone with a capital outlay of around Rs 1,200 crores, the company said, "The basic engineering plan, design, budget, equipment list and vendor list are in advanced stages of finalisation and key members of the project team have been appointed."

The proposed phenol and acetone plant will be located at Dahej. The capacity of the phenol plant will be 200,000 million tonnes per annum (MTPA) and that of co-product acetone will be 120,000 MTPA.

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