Revenue from operations fell 14.07% year on year to Rs 1,768.34 crore during the quarter.
EBITDA dropped 34% to Rs 248 crore during the quarter as compared with Rs 366 crore posted in corresponding quarter last year. EBITDA margin reduced 400 bps to 14% in Q1 FY24 as against 18% in Q1 FY23.
The company's revenue from advanced intermediates fell 3% YoY to Rs 708 crore during the quarter and revenue from Phenolics tumbled 20% YoY to Rs 1,068 crore in Q1 FY24.
Commenting on the performance for Q1 FY24, Deepak C. Mehta, chairman & managing director, said, “We entered FY24 on a challenging note while navigating through several global macro-economic pressures and a slower-than-anticipated increase in consumption, leading to modest performance. The chemical industry faced difficulties due to China's opening up and destocking of inventory across the globe. Nevertheless, we remain committed to strengthening our market position and enhancing product portfolio
Wholly owned subsidiary, Deepak Chem Tech Limited (DCTL), inked a groundbreaking Rs. 5,000 crore MoU with the Government of Gujarat. This collaboration aims to produce Specialty Chemicals, Phenol, Acetone, and Bisphenol within the state, with the aim to commence the first phase in 2024-2025 and complete the projects by 2026-2027. This is a testament of our focus on import substitution through value-addition.
In its outlook, Deepak Nitrite said, “DNL stands to reap the benefits of the 'Make in India for the World' initiative and the resurgence of the China+1 strategy, with a plethora of opportunities emerging in the sector. With projects close to Rs 25 billion under execution across its key product lines, DNL is clearly committed to sustained growth and value addition. Leveraging its robust manufacturing infrastructure and extensive expertise in chemistry, DNL has emerged as a key partner for major Indian and international conglomerates.”
Deepak Nitrite is one of the leading suppliers of chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.