Deepak Nitrite Ltd. reported a more than three-fold jump in consolidated net profit for the first quarter, driven by a sharp expansion in operating margins and healthy revenue growth.
The company posted a consolidated net profit of Rs 345 crore for the quarter ended June, compared with Rs 112 crore in the corresponding period last year.
Revenue from operations rose 36.4% year-on-year to Rs 2,578 crore, up from Rs 1,890 crore a year earlier.
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Operating performance also improved significantly. EBITDA climbed to Rs 540.2 crore from Rs 189.6 crore in the year-ago period, while EBITDA margin expanded to 21% from 10%, reflecting stronger profitability.
Separately, Deepak Nitrite said its wholly owned subsidiary, Deepak Chem Tech Ltd., has approved a project to manufacture Bisphenol A (BPA) with a capacity of up to 240 KTA. The project involves an investment of around Rs 2,500 crore, including greenfield infrastructure, with the final cost to be firmed up after detailed engineering.
The company said the investment will be funded through an appropriate mix of debt and equity.
According to the company, the BPA project will strengthen its integrated chemicals value chain, from Cumene to Phenol & Acetone, Bisphenol A and Polycarbonate resins, while also enabling it to tap India's growing epoxy resin market.
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In a separate announcement, Deepak Nitrite appointed Lohit Shringi as Chief Executive Officer of its Advanced Intermediates Business with effect from Aug. 4.
The company said he brings over 27 years of leadership experience across business transformation, operations, strategy and innovation, and most recently served as Executive Director and Chief of Specialty Chemicals at PCBL Chemical Ltd.
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