Deepak Nitrite Ltd. shares gained as much as 5% in early trade on Wednesday after the company reported a sharp jump in earnings for the June quarter, driven by strong growth in revenue and a significant expansion in operating profitability.
The stock is trading at Rs 1,797 apiece on the NSE around 9.27 am, gaining from its previous close at Rs 1,717.7.
Investors will be tracking whether the robust performance reflects sustained demand across the company's businesses and if the margin expansion can be maintained in the coming quarters.
Revenue And Profit Jump In Q1
On a consolidated basis, Deepak Nitrite reported a net profit of Rs 345 crore for the first quarter, more than three times higher than Rs 112 crore reported in the corresponding period last year.
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Revenue from operations rose 36.4% year-on-year to Rs 2,578 crore from Rs 1,890 crore in the year-ago quarter, reflecting healthy growth in the business.
The company's operating performance also improved significantly during the quarter. Ebitda stood at Rs 540.2 crore, compared with Rs 189.6 crore in the same period last year.
Ebitda margin expanded significantly to 21% in the June quarter from 10% a year ago, indicating stronger operating leverage and improved profitability.
Stock movement
The chemical manufacturer's stock has been in focus for a month now, as the stock has rallied over 15% during the period.
In the past week, the stock gained over 7%, which includes today's rally as well.
The stock is currently trading at a price-to-earnings multiple of 29.9 times, and its market cap stood at Rs 24,208.4 crore as at the end of the previous trading session.
Also Read: Deepak Nitrite Q1 Results: Profit Triples As Margin Expands Sharply; Revenue Jumps 37%
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