Deepak Nitrite shares slip 1% post weak Q1 numbers

Shares of Deepak Nitrite fell 1 percent to Rs 466.35 on August 4 in early morning trade, as the market reacted negatively to the company’s June quarter numbers.

Chemical manufacturing company Deepak Nitrite reported a 36.1 percent decline in consolidated net profit at Rs 149.9 crore for the June quarter. The company’s net profit stood at Rs 234.62 crore during the corresponding period of the previous year, the company said in a regulatory filing.

At the operating level, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 41.1 percent to Rs 209.7 crore in the first quarter of this fiscal year, compared to Rs 356 crore in Q1FY23.

The EBITDA margin stood at 11.9 percent in the reporting quarter, compared to 17.3 percent in the corresponding period of the previous fiscal year.

On June 2, 2022, the company had a fire incident at one of its manufacturing sites in Nandesari, Gujarat. Property, equipment, and inventory worth crores of rupees were damaged, and the business was impacted, resulting in an overall damage cost of Rs 47.20 crore. The company received partial payment from insurance companies for the claims against the loss of assets and inventories, aggregating Rs 27.09 crore, which has been adjusted against the claims, as per the filing. Out of the Rs 27.09 crore, Rs 11.23 crore was received in March 2023, and the balance of Rs 15.86 crore was received in the June quarter, the company added.

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