DEEPAKNTR · Chemicals
Deepak Nitrite Ltd. reported revenue of ₹2,032 cr for July to September 2024, +14.3% on the year and −6.2% on the quarter.
Operating profit (EBITDA) was ₹298 cr, a margin of 14.7%, −232 bps on the year and +41 bps on the quarter. Over the last 6 quarters the margin has ranged from 11.9% to 17.0%, averaging 14.5%. Operating costs grew +17.5%, faster than revenue at +14.3%, so operating profit grew less than sales.
Net profit was ₹194 cr, −5.4% on the year and −4.4% on the quarter, with earnings per share of ₹14.24. Profit before other income, one-offs and tax fell 6.5%, so the profit growth came from the business itself. The tax rate of 26% is in line with its recent average.
Speciality chemicals are read on volumes and pricing, with Chinese supply a recurring swing factor; inventory destocking can hit a quarter without a change in demand. The quarterly statements do not carry volumes against prices, capacity utilisation and new molecules; those come with the filing read.
On earnings per share of ₹62.51 over the last four quarters, the stock at ₹1,600.10 trades at 25.6 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow filed with this quarter, the auditor's review, segment results, one-off items line by line and what management said on the call.
No check fired. That is a statement about the checks below, not a verdict on the company.
Operating margin slipped on the year.
EBITDA margin 14.7%, −232 bps on the year (+41 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹1,778 cr | ₹2,009 cr | ₹2,126 cr | ₹2,167 cr | ₹2,032 cr | ₹1,903 cr | ₹2,180 cr | ₹1,890 cr | ₹1,902 cr | ₹1,975 cr | ₹2,120 cr | ₹2,578 cr |
| YoY | — | — | — | +23% | +14% | −5% | +3% | −13% | −6% | +4% | −3% | +36% |
| EBITDA margin | 17.0% | 15.2% | 14.2% | 14.3% | 14.7% | 8.9% | 14.5% | 10.1% | 10.7% | 10.7% | 17.7% | 20.9% |
| Other income, % of PBT | 6% | 5% | 28% | 7% | 8% | 16% | 8% | 16% | 12% | −3% | 2% | 3% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 26% | 26% | 27% | 26% | 26% | 27% | 27% | 27% | 27% | 28% | 27% | 26% |
| Net profit | ₹205 cr | ₹202 cr | ₹254 cr | ₹203 cr | ₹194 cr | ₹98.0 cr | ₹202 cr | ₹112 cr | ₹119 cr | ₹100 cr | ₹220 cr | ₹345 cr |
| YoY | — | — | — | +35% | −5% | −51% | −20% | −45% | −39% | +2% | +9% | +208% |
| Core profit YoY | — | — | — | +51% | −7% | −56% | +2% | −49% | −41% | +25% | +15% | +249% |
| EPS | ₹15.04 | ₹14.81 | ₹18.61 | ₹14.85 | ₹14.24 | ₹7.19 | ₹14.84 | ₹8.23 | ₹8.70 | ₹7.32 | ₹16.11 | ₹25.30 |
| Flags | · | · | · | ✓ | ✓ | 1 | ✓ | 1 | 1 | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Deepak Nitrite Ltd. reported revenue of ₹2,032 cr (+14.3% on the year) and net profit of ₹194 cr (−5.4% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved −6.5% on the year, against −5.4% for reported profit.
None of the 7 checks that could run raised a question.
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