Deepak Nitrite Limited (DNL) has posted Q2 FY25 net profit at Rs. 194 crore as compared to Rs. 205 crore in Q2 FY24. In Q1 FY25, the company posted net profit of Rs. 203 crore. Revenue in Q2 FY25 stood at Rs. 2,032 crore as compared to Rs. 1,778 crore. EBITDA in Q2 FY25 stood at Rs. 319 crore at the same level as Q2 FY24.

For H1 FY25, DNL has posted revenue, EBITDA and PAT at Rs. 4,199 crore, Rs. 647 crore and Rs. 397 crore respectively. These stood at Rs. 3,546 crore, Rs. 561 crore and Rs. 355 crore in H1 FY24.

Commenting on the performance for Q2 & H1 FY25, Deepak C. Mehta, Chairman & Managing Director, DNL, said: “Our position as a cost competitive producer of chemical intermediates with a diversified portfolio of offerings has enabled us to navigate the challenging global landscape, marked by geopolitical disruptions and softened demand that continue to impact the chemical industry.

In the second quarter of FY24-25, our performance showcased this resilience, with steady sequential results and a notable improvement year-on-year. Despite mixed customer sentiment and ongoing pricing pressures, we saw encouraging volume growth on a consolidated basis. While demand remained subdued in agrochemicals, our strong domestic market presence, supported by positive momentum in the phenolics business, has been instrumental in countering global challenges.

Though we continue to face the effects of business cyclicity, our focus is on investing in integrated business models to build long-term resilience. Integration not only enhances our predictability but also strengthens our competitiveness, and we anticipate that we would see the benefits of such integration related investments in the coming years.

As we add new capabilities such as fluorination, we are able to explore many more molecules in the speciality sector giving us greater opportunities for contract manufacturing. Parallelly, we have crossed one major milestone in bringing a new vertical, i.e. Advanced Materials. We have today signed an agreement to acquire the assets and license the technology from Messrs. Trinseo PLC to manufacture 165,000 tons of Polycarbonate (PC) resins. These are among the most advanced engineering polymers available today. This project which entails a commitment of ₹5,000 crore is expected to be operational in the next 3 years.

This endeavour will also accelerate our upstream investments, ensuring that our Polycarbonate plant is fully integrated from foundational building blocks like propylene and benzene. Notably, we have already secured a long-term agreement for the offtake of 250,000 tons of propylene from Petronet LNG.

This would be the first plant to make advanced polymers such as Polycarbonate in the country. Apart from partially replacing local imports, this will go a long way towards supporting India’s efforts to modernize and be self-reliant in the sunrise sectors of semiconductors, defence, automotive (electric mobility), electronics, construction, appliances, medical devices, and emerging sectors like aerospace, aviation, and drones.”

Key Highlights

* Despite the adverse operating environment, the Company managed to maintain its wallet share for key products demonstrating strong customer relationships backed by solid product portfolio which caters to a wide range of end-use applications. The decline in revenue on a y-o-y basis is due to softness in pricing

* Encountered order deferments from EU customers due to excessive inventory levels – the Company moved swiftly to place these volumes with customers in Central and Southeast Asia

* Moderate profitability in Q2 is attributed to non-traditional geographical customer mix

* Strategic initiatives in place to drive sustained performance going forward, led by efforts around building new relationships, strengthening existing ones, developing innovative products, and optimizing costs