Deepak Nitrite Limited · NSE:DEEPAKNTR
Deepak Nitrite — Q2 FY2025 Earnings Presentation
27 slides from Deepak Nitrite's earnings presentation, Nov 14, 2024
Slide 1: Q2 & H1 FY2025 Results Presentation
RESPONSIBLE CHEMISTRY Q2 & H1 FY2025 Results Presentation November 14, 2024
Slide 2: Company Overview / Depend On Deepak
RESPONSIBLE CHEMISTRY Company Overview Depend On Deepak Deepak Nitrite (DNL) is one of the fastest growing and trusted chemical Deepak Nitrite Limited (DNL) has built a strong organisation with processes and intermediates company in India with a diversified portfolio of products that cater systems t
Slide 3: Key facts at a glance
RESPONSIBLE CHEMISTRY 7 Modern Manufacturing 32+ Products 56+ Applications ZERO Net debt Facilities at 5 strategic locations ₹4,239 Cr H1 FY25 Revenues 45+ Countries receive our products 5,000+ Total Workforce 1,000+ Customers ICRA AA (Positive) Long-Term Rating ICRA A1+ Short-Term Rating 3
Slide 4: Deepak Nitrite Limited group structure
RESPONSIBLE CHEMISTRY 100% subsidiary of DNL 100% subsidiary of DNL Deepak Phenolics Limited Deepak Chem Tech (DPL) Limited (DCTL) Deepak Nitrite Limited 100% subsidiary of DNL (DNL) 100% subsidiary of DNL Deepak Nitrite Deepak PMC Leading manufacturer of Corporation Inc. chemical intermediates Limi
Slide 5: Manufacturing Locations and Global Customers
RESPONSIBLE CHEMISTRY Finland Russia United Canada Kingdom Netherland Poland Belgium Germany France Switzerland Manufacturing Locations United States Italy Portugal Turkey Nandesari, Gujarat (DNL, DCTL) Japan Israel Kuwait China Dahej, Gujarat (DNL, DPL and DCTL) Nepal Algeria Egypt UAE Bangladesh V
Slide 6: Innovativeness, Agility, Responsiveness
RESPONSIBLE CHEMISTRY Innovativeness Agility Responsiveness Performance-driven Ownership Driving growth In a constantly We go beyond mere Leveraging profound Every individual is through evolving landscape, responsiveness; we category insights to both a leader and a groundbreaking ideas adaptability
Slide 7: Product Driven Expansion
RESPONSIBLE CHEMISTRY PRODUCT Adopted Integrated approach to growth. We are foraying into New Products, chemistries and end applications. Our investment strategy for DRIVEN ₹14,000 Crores of Projects involve Speciality products, Bisphenol A, Polycarbonate resins and Methyl methacrylate (MMA) EXPANSI
Slide 8: Policy Tailwinds and favorable government initiatives
RESPONSIBLE CHEMISTRY Sustainability and Green Chemistry Policy Tailwinds Focus on eco-friendly and Digital Transformation Favorable government sustainable practices; Adoption of advanced initiatives development of bio-based, technologies like AI, IoT, and renewable chemicals automation Robust Domes
Slide 9: Depend on Deepak
RESPONSIBLE CHEMISTRY Depend on Deepak Operational Excellence Forefront of Sustainability Robust business controls Making significant improvement Working on renewable Working capital optimization in processes energy solutions to reduce Prudent raw material Implemented Advanced carbon footprint
Slide 10: DCTL to Establish Polycarbonate Manufacturing Facility in Dahej by 2028
RESPONSIBLE CHEMISTRY DCTL to Establish World-Class Polycarbonate Manufacturing Facility in Dahej by 2028 Board of Deepak Chem Tech Ltd., a wholly owned subsidiary of Deepak Nitrite Ltd., has approved an investment in a greenfield Polycarbonate resin plant at Dahej, Gujarat DCTL has signed agree
Slide 11: Market cap and dividends rewarding shareholders
RESPONSIBLE CHEMISTRY Consistently rewarded Dividend as % of Face Value shareholders Interim Final Special 400% Market Cap 350% 300% ₹360 bn. 250% 50% $ 4.3 bn* 200% 375% 375% 350% 31 Oct ‘24 150% ₹47 bn. 100% 225% 225% $ 0.6 bn* 50% 100% 0% 31 Oct ‘19 FY19 FY20 FY21 FY22 FY23 FY24 *Conversion rate
Slide 12: Lifetime Achievement Award
RESPONSIBLE CHEMISTRY Lifetime Achievement Award Shri Deepak C. Mehta was honored with the ICC Lifetime Achievement Award on 21st September 2024 in Mumbai for his exceptional contributions to shaping the Indian chemical sector and nation- building. 12
Slide 13: Chairman chaired Inaugural Conference at India Chem 2024
RESPONSIBLE CHEMISTRY FICCI organized the International Expo and Conference for the Shri Deepak C Mehta Chaired the Inaugural Chemicals and Petrochemical sector in Mumbai from 17-19 October 2024, with Deepak Nitrite Ltd. participating, and Chairman Shri Conference at India Chem 2024 : Deepak Mehta c
Slide 14: Performance Takeaways
RESPONSIBLE CHEMISTRY Key numbers Q2 H1 Particulars (₹ crore) Y-o-Y Q-o-Q Y-o-Y FY25 FY25 Total Income 2,053 14% -6% 4,239 18% 15% 84:16 13% YoY growth in EBITDA in Domestic : Exports YoY growth in PBT in EBITDA 319 0% -3% 647 15% H1 FY25 Revenue Mix for Q2 FY25 H1FY25 PBT 264 -5% -4% 539 13% Perfor
Slide 15: Consolidated Q2 FY25 highlights
RESPONSIBLE CHEMISTRY On a Consolidated basis, Revenue grew 14% Y-o-Y to ₹2,053 crore and EBITDA of ₹319 crore was stable on a Y-o-Y basis in Q2 FY25 Deepak Phenolics: Revenue grew 29% Y-o-Y and recorded a 27% Y-O-Y increase in EBITDA, totalling ₹240 crore in Q2 FY25 Production and Sales Recor
Slide 16: Project Status
RESPONSIBLE CHEMISTRY Project Status Acid Unit: Expected to be commissioned in H2 FY25 MIBK/MIBC Project: Commissioning by H1FY26 Acetophenone: The Acetophenone is expected to be commissioned in H1 FY26 Other Projects: Photochlorination, Nitration and hydrogenation will be commissioned toget
Slide 17: Total Income, EBITDA, PBT: Q2 FY25 and H1 FY25
RESPONSIBLE CHEMISTRY Total Income ( ₹ Cr.) EBITDA ( ₹ Cr.) PBT ( ₹ Cr.) 2,186 319 328 319 277 275 264 2,053 1,795 Q2 FY25 Q2FY24 Q 1 FY 2 5 Q2FY25 Q 2 FY 2 4 Q1FY25 Q2FY25 Q 2 FY 2 4 Q 1 FY 2 5 Q 2 FY 2 5 Y-o-Y 14% Q-o-Q -6% Y-o-Y Flat Q-o-Q -3% Y-o-Y -5% Q-o-Q -4% Total Income ( ₹ Cr.) EBITDA ( ₹
Slide 18: Revenue and EBITDA commentary
RESPONSIBLE CHEMISTRY Strong growth in Phenolics was bolstered by healthy domestic demand; Higher volumes produced as we accrued full benefits of debottlenecking initiatives REVENUE Undertook proactive steps to grow volumes amid muted demand supply dynamics. Advanced Intermediates mirrored the s
Slide 19: Management commentary on Q2 & H1 FY25 performance
RESPONSIBLE CHEMISTRY “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
Slide 20: Advanced Intermediates Key Highlights
RESPONSIBLE CHEMISTRY Revenue from Operations (₹ Cr.) EBIT (₹ Cr.) 716 103 670 606 67 47 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Y-o-Y -10% Q-o-Q -15% Y-o-Y -54% Q-o-Q -29% Key Highlights Despite the adverse operating environment, the Company managed to maintain its wallet share for key pr
Slide 21: Phenolics Key Highlights
RESPONSIBLE CHEMISTRY Revenue from Operations (₹ Cr.) EBIT (₹ Cr.) 208 215 1,464 1,443 170 1,120 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Y-o-Y 29% Q-o-Q -1% Y-o-Y 26% Q-o-Q 4% Key Highlights The robust performance in Phenolics was driven by several initiatives around debottlenecking phenol
Slide 22: Make in India for the World: growth strategy
RESPONSIBLE CHEMISTRY DNL is well positioned to capitalize on the 'Make in India for the World' initiative With its formidable manufacturing infrastructure and extensive process proficiency in the realm of chemistry, DNL has assumed a pivotal role as a partner for major customers, both domestic
Slide 23: Consolidated Profit & Loss statement
RESPONSIBLE CHEMISTRY Particulars (₹ crore) Q2 FY25 Q1 FY25 Q-o-Q (%) Q2 FY24 Y-o-Y (%) H1 FY25 H1 FY24 Y-o-Y (%) Revenue 2,032 2,167 -6% 1,778 14% 4,199 3,546 18% Other Income 21 19 13% 17 25% 40 49 -18% Total Revenue 2,053 2,186 -6% 1,795 14% 4,239 3,595 18% Total Expenditure 1,734 1,858 -7% 1,476
Slide 24: Segment revenue and EBIT
RESPONSIBLE CHEMISTRY Particulars ( ₹ crore) Q2 FY25 Q1 FY25 Q-o-Q (%) Q2 FY24 Y-o-Y (%) H1 FY25 H1 FY24 Y-o-Y (%) Advanced Intermediates 606 716 -15% 670 -10% 1,322 1,379 -4% Phenolics 1,443 1,464 -1% 1,120 29% 2,907 2,188 33% Less - Inter segment 17 12 40% 12 42% 30 20 49% Total 2,032 2,167 -6% 1,
Slide 25: Deepak Nitrite Limited
RESPONSIBLE CHEMISTRY Deepak Nitrite Limited For further information, please contact: (NSE: DEEPAKNTR, BSE: 506401) is a leading chemical intermediates producer with a Somsekhar Nanda Chief Financial Officer diversified portfolio that caters to the dyes and Deepak Nitrite Limited pigments, agrochemi
Slide 26: Forward-looking statements disclaimer
RESPONSIBLE CHEMISTRY This presentation contains forward-looking statements that involve risks and uncertainties. When used in this presentation, the words ‘anticipate,’ ‘belief,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘will’ and other similar expressions as they relate to the Company and its Businesses ar
Slide 27: Thank You
RESPONSIBLE CHEMISTRY Thank You