Deepak Nitrite Q3 Results: Profit Declines 3%, Misses Estimates

Deepak Nitrite Ltd.'s net profit decreased 3.34% in the third quarter of fiscal 2024.

The company's profit dropped to Rs 202.05 crore in the October-December quarter, in comparison with Rs 209.05 crore in the year-ago period, according to its exchange filing. That compares with the Rs 220-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue up 0.91% at Rs 2,009.23 crore vs Rs 1,991.06 crore (Bloomberg estimate: Rs 1,862 crore).

• Ebitda down 3.16% at Rs 304.65 crore vs Rs 314.59 crore (Bloomberg estimate: Rs 328 crore).

• Margin narrows 63 bps to 15.16% vs 15.8%.

• Net profit down 3.34% at Rs 202.05 crore vs Rs 209.05 crore (Bloomberg estimate: Rs 220 crore).

The company's wholly owned subsidiary, Deepak Chem Tech Ltd., has signed a Memorandum of Understanding with the government of Gujarat on Jan. 3 to invest around Rs 9,000 crore in the next four years, with the proposed year of commencement by 2027.

The company will set up projects to manufacture polycarbonate, methyl methacrylate, poly methyl methacrylate resins and compounds and aniline in the state of Gujarat.

The board of directors has also approved investment up to 51% of the equity share capital of Deepak Oman Industries, a company incorporated in Oman, to set up a chemical manufacturing plant.

Shares of the company closed 1.41% higher at Rs 2,229 apiece as compared with a rise of 0.59% in the benchmark Nifty 50 on Tuesday.