The Indian specialty chemical compounds sector, valued at $64.5 billion in 2024, is projected to develop at a CAGR of three.8 %, reaching $92.6 billion by 2033. This progress is pushed by demand from industries like agriculture, building, and automotive, alongside a shift towards sustainable options and elevated R&D investments.
Value Motion
With a market capitalization of Rs 26,678.48 crore, on Friday, the shares of Deepak Nitrite Ltd closed at Rs 1,956.50 per share, decreased 0.73 % as in comparison with the earlier closing worth of Rs 1,970.50 apiece.
Matter Rationalization
Deepak Chem Tech Restricted (‘DCTL’), a cloth wholly owned subsidiary of Deepak Nitrite Restricted, inter alia thought of and accepted establishing manufacturing advanced to provide Phenol & Acetone, lsopropyl Alcohol, and associated infrastructure/utilities with the mixture funding of round Rs 3,500 Crores which shall be funded by way of the combo of debt and fairness.
Furthermore, the corporate operates at full capability, producing 3.3 lakh TPA of phenol, 2 lakh TPA of acetone, and 80,000 TPA of isopropyl alcohol. It plans so as to add 3 lakh TPA of phenol, 1.85 lakh TPA of acetone, and 1 lakh TPA isopropyl alcohol capability over three years to satisfy rising demand.
Additional, the Board of Administrators of DCTL on the mentioned assembly additionally accepted establishing a multi-purpose manufacturing facility with a capital outlay of round Rs 220 Crores for specialty fluorochemicals.
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Monetary Efficiency
The corporate reported a lower of 5.2 % YoY in income from operations from Rs 2,009 crore in Q3FY24 to Rs 1,903 crore in Q3FY25. Their Internet earnings decreased by 51 % YoY from Rs 202 Crore to Rs 98 crore over the identical interval.
Strategic Initiatives
The corporate is launching new merchandise from current property to spice up This fall income and margins. A nitric acid advanced will contribute from Q1 FY26, whereas a brand new R&D heart opens by This fall FY25. Upcoming integrations like MIBK and MIBC by H1 FY26 assist power, life sciences, and import substitution objectives.
Margin Steerage
The corporate expects margin restoration as demand stabilizes and new tasks ramp up. Administration anticipates profitability to normalize between Q1 and Q2 FY26, with This fall displaying a major enchancment over Q3, indicating a optimistic turnaround and gradual return to more healthy margins within the coming fiscal yr.
Firm profile
Deepak Nitrite Restricted is engaged within the manufacturing and buying and selling of chemical compounds. The Firm operates by way of two segments: Superior Intermediates and Phenolics. It’s Superior Intermediates phase gives sodium nitrite, sodium nitrate, nitrotoluidines, gas components, nitrosyl sulphuric acid, xylidines, and so forth.
Written by Abhishek Singh
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