Deepak Nitrite Down 10%; Weak Q3 Earnings Dampen Investor Sentiments
Deepak Nitrite shares were down by about 10% today to reach a lower circuit of ₹2,014 after the company reported poor Q3 earnings.
Deepak Nitrite Down 10%; Weak Q3 Earnings Dampen Investor Sentiments
Shares of Deepak Nitrite fell by about 10% today to reach a lower circuit of ₹2,014 after the company reported poor Q3 earnings. A sharp decline in net profit and revenue raised concerns among investors over the future growth prospects.
Net profit in the December quarter fell by about 51.5% to ₹98 crore against ₹202 crore in the year-ago period, while revenue declined by 5.3% YoY to ₹1,903.4 crore from ₹2,009.2 crore in Q3FY24. EBITDA tumbled 44.7% to ₹168.5 crore from Rs 304.6 crore, weighed down by surging input costs and lower realisations.
Operating margins fell from 15.2% in Q3FY24 to 8.9% in Q3FY25 on account of weaker pricing power and acute cost pressure. Notably, subdued demand from end-user sectors like paints, cosmetics, and pharmaceuticals have caused a dent to the revenues of the chemical industry.
Deepak Nitrite is engaged in producing intermediaries for various industries, including agrochemicals, paints, and pharmaceuticals. With margin pressure in continuance, analysts have opined on cost-cutting measures and capacity expansion plans for the company’s future growth.
As of 9:20 am, Deepak Nitrite was trading at ₹2,074, down 7.3% from the previous day’s closing on NSE.
