What Caused Deepak Nitrite’s Q4 Net Profit to Decline by 20%?
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Synopsis
Deepak Nitrite Limited has revealed a significant drop in its Q4 net profit due to rising input costs, despite a slight revenue increase. With a dividend proposal on the horizon, what does this mean for the company's future? Read on for an in-depth analysis.
Key Takeaways
- Net profit decreased by 20.3% to Rs 202.4 crore.
- Revenue rose by 2.4% YoY to Rs 2,179.7 crore.
- EBITDA increased by 5% to Rs 316.5 crore.
- EBITDA margin improved to 14.52%.
- Final dividend of Rs 7.50 per share proposed.
Mumbai, May 28 (NationPress) - Deepak Nitrite Limited, a producer of specialty chemicals, disclosed a 20.3 percent decrease in its consolidated net profit for the fourth quarter ending March 31 (Q4 FY25). The company's reported net profit stood at Rs 202.4 crore, a decline from Rs 254 crore in the corresponding quarter of the previous fiscal year, as indicated in its filing with the stock exchange.
The profit drop primarily stemmed from increased input costs, which negatively affected earnings, despite the company experiencing a slight rise in both revenue and operating income.
For the quarter, revenue from operations increased by 2.4 percent year-on-year (YoY), reaching Rs 2,179.7 crore compared to Rs 2,126.2 crore a year prior.
This modest growth was bolstered by consistent performance across the company's key chemical segments.
In spite of the profit challenges, EBITDA (earnings before interest, tax, depreciation, and amortization) saw a 5 percent rise to Rs 316.5 crore, up from Rs 301 crore in the last financial year.
The company’s EBITDA margin slightly improved to 14.52 percent, compared to 14.16 percent in the previous financial year.
In a different statement, Deepak Nitrite announced that its Board has proposed a final dividend of Rs 7.50 per share (equating to 375 percent on the face value of Rs 2) for the financial year 2024-25.
This dividend is pending approval from shareholders at the upcoming Annual General Meeting (AGM), as stated in its regulatory filing.
Before the earnings announcement, Deepak Nitrite’s shares closed 1.9 percent lower on the National Stock Exchange (NSE).
Headquartered in Vadodara, Gujarat, Deepak Nitrite is recognized as one of India's prominent manufacturers of chemical intermediates, serving various sectors including pharmaceuticals, agrochemicals, and dyes. The company operates in multiple product categories such as Basic Chemicals (BC), Fine and Specialty Chemicals (FSC), and Performance Products (PP), with manufacturing facilities located in Gujarat, Maharashtra, and Telangana.
Point of View
It's crucial to understand that while Deepak Nitrite's profit margins are under pressure, the company still shows resilience with a slight uptick in revenue and EBITDA. This reflects the ongoing challenges in the specialty chemicals market, yet also highlights opportunities for recovery and growth in the coming quarters.
NationPress
20/07/2025
Frequently Asked Questions
Why did Deepak Nitrite's net profit drop?
The drop is primarily attributed to higher input costs affecting earnings.
What is the proposed dividend for shareholders?
The Board has recommended a final dividend of Rs 7.50 per share for the financial year 2024-25.
Did Deepak Nitrite's revenue increase or decrease?
The revenue from operations increased by 2.4 percent year-on-year.
Where is Deepak Nitrite headquartered?
Deepak Nitrite is headquartered in Vadodara, Gujarat.
What are the main sectors served by Deepak Nitrite?
Deepak Nitrite serves sectors including pharmaceuticals, agrochemicals, and dyes.
