Deepak Nitrite rises over 5% on strong March quarter nos, pares gains later

The company's revenue from operations (sales), on a consolidated basis, rose 4.69 per cent to Rs 1,055.54 crore for the quarter under review

Shares of Deepak Nitrite gained as much as 5.49 per cent to Rs 528.70 apiece on the BSE on Wednesday, a day after the company reported an 88 per cent jump in its consolidated net profit at Rs 172.30 crore for the quarter ended March 2020. The company had logged profit of Rs 91.46 crore in the year-ago period.

At 09:40 am, the stock was trading nearly 2 per cent higher at Rs 510. In comparison, the S&P BSE Sensex was trading 60 points or 0.20 per cent lower at 30,549.52 levels.

Deepk Nitrite shares had hit a 52-week high of Rs 570 on May 6 while its 52-week low stands at Rs 256.95, touched on August 23, 2019.

The company's revenue from operations (sales) rose 4.69 per cent to Rs 1,055.54 crore for the quarter under review as against Rs 1,008.30 crore in the corresponding quarter of the previous fiscal.

For the full year, net profit rose 251.85 per cent to Rs 611.03 crore in the year ended March 2020 while sales rose 56.66 per cent to Rs 4,229.71 crore.

On standalone basis, revenues stood at Rs 526 crore in Q4FY20 as compared to Rs 488 crore in Q4FY19, higher by 8 per cent YoY.

Profit before tax (PBT) came in at Rs 160 crore, up 84 per cent over Rs 87.0 crore in the same period last year. Profit after tax (PAT) stood at Rs 116 crore, up 106 per cent YoY.

"I am glad to announce that we have ended FY20 on a positive note with record topline performance and highest ever PAT despite disruptions caused due to the CoVID-19 pandemic. We have ticked all boxes with volume growth, improved realisations as well as cost control. This was further supported by reduced finance costs and a favourable rate of corporate tax. The growth in the fourth quarter could have been slightly higher as we lost 10 days of production due to the national lockdown," said Deepak C Mehta, Chairman & Managing Director.

On Covid-19 disruption, the company said it is expected to have significant economic impact both locally and internationally. "Although production has restarted at all plants , the supply chain has begun to recover and various restrictions on movement of material and people are set to be eased; restoring productivity to pre-lockdown levels is expected to be a gradual process," the company said in its press release.