Conference Call with Deepak Nitrite Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript. Management in attendance: Maulik Mehta and Senior Team
Commodity Chemicals firm Deepak Nitrite declares Q4FY22 result: In FY22, reported highest ever Revenue, EBITDA and PAT in the Company’s history, despite a challenging operating environment that was marked by rising prices of key raw materials and other utilities, constraints in logistics and material movement as well as increased uncertainty in global trade on the back of Russia-Ukraine conflict Reported Consolidated PAT of Rs. 1,067 crore in FY22 surpassing the milestone of Rs. 1,000 crore in Annual PAT Premised on robust financial performance during the year, the Board of Directors has declared a Final Dividend of Rs. 7 per equity share (350%) of Rs. 2 each for FY2021-22 towards rewarding the shareholders Deepak Nitrite’s solid financial performance demonstrates the strength of its efficient manufacturing model with adequate backward integration and depth of multi-year relationships with key customers On a consolidated basis, DNL stood debt free on basis of net debt with strong Networth of Rs. 3,338 crore, enabling ample scope to leverage the strong balance sheet for future expansion Credit rating agency ICRA has upgraded DNL’s rating outlook from AA (stable) to AA (positive) and DPL‘s credit rating has been enhanced from AA- (stable) to AA (Positive) within a span of less than a year Strong performance by all segments as the Company reported highest ever quarterly turnover in its 50 year history Volume growth for several products during the quarter enabled the Company to deliver traction in revenues Formula based pricing, increase in wallet share with large customers and addition of newer customers and geographies have supported the revenue momentum. Better realisations combined with higher plant efficiency and operating leverage drove EBITDA margins to 22% during the quarter This is despite the impact of severe ongoing logistics challenges, skyrocketing coal and RLNG prices which impacted cost of utilities and lifetime high input prices for several key raw materials. PAT performance was in-line with operational performance during the quarter, further aided by significantly lower finance costs Pass through of higher input prices and better planning resulted in production of high-demand products, thereby leading to enhanced profitability on QoQ basis. Commenting on the performance for Q4 & FY22, Mr. Deepak C. Mehta, Chairman & Managing Director said: “Our FY22 performance encapsulates the heightened resilience and agility in our Business Model as we have scaled new benchmarks in revenues and profitability during the year. This was achieved in the backdrop of sharp inflation in operating costs, higher input prices and disrupted supply chains. Both Revenues and PAT demonstrated significant growth in FY22 on a consolidated basis. The Company sustains a high degree of efficiency and continues to make progress on several growth initiatives. We will continue to be nimble to the changing needs and preferences of our customers and deliver specialized solutions. While doing so, we will prudently deploy capital to elevate our market position in the chosen chemistries. Our foray into advanced solvents will diversify our product portfolio, broaden our customer base, and raise the amount of sophisticated, high-margin products in the portfolio, thereby enhancing our business proposition.” Result PDF