Mumbai (Maharashtra)/ Vadodara (Gujarat) [India], February 10 (ANI/PRNewswire): Deepak Nitrite Limited ('DNL'), one of the fastest growing and trusted chemical intermediates companies in India, announces its financial results for the quarter and nine months ended December 31, 2022. Amidst ongoing challenges in the macro-economic environment, DNL has demonstrated agility to deliver strong revenue growth during the period. This was achieved by sustained global competitiveness and high operational excellence enabling it to deliver new highs in volumes for several key products. While prices of inputs have moderated slightly in recent weeks, they remain elevated compared to the corresponding period last year. CMD's Message Commenting on the performance, Deepak C. Mehta, Chairman & Managing Director, said, "Deepak Nitrite (DNL) has demonstrated significant agility to meet its delivery commitments, thereby delivering a strong topline performance in Q3FY23. We have set new benchmarks in production and delivery volumes of several flagship products. Even as we continue to exhibit tremendous resilience in the face of persistent inflationary pressures across certain inputs and utilities, our focus is to steadily elevate our profitability in a sustainable manner reinforcing our commitment towards people, planet, and profit. We have approved a capex of Rs 1,000 crore which shall help the company's growth plans. Out of this, we have approved a project for manufacturing Polycarbonate compounding which is in furtherance to our commitment to enter PC business. This project shall help us understand the market trends, customer requirements and finer aspects even as we progress towards the Polycarbonate project. We commissioned new brownfield projects that will benefit our future performance. This includes a new unit for producing a key agrochemical intermediate. Amidst this, we continue to reduce our leverage and strengthen our balance sheet, increasing headroom for growth capex. We also continue to methodically invest in expansion projects in order to diversify our expertise and widen the addressable market. The objective is to progressively expand the product portfolio through innovative products where we have a clear competitive advantage. This will diversify our offerings, strengthen operational integration and increase the proportion of higher-margin products. We are highly excited by our prospects and will strive to consistently enhance the value proposition for our stakeholders." Key Developments Awards & Accolades - CMD Deepak Mehta was awarded the 2022 Hurun India Special Jury Award in recognition of his outstanding contribution to the Indian Economy - Deepak Nitrite Limited was awarded by ICAI for Excellence in Financial Reporting for its Annual Report 2021-22 - The Company was adjudged winner in Silver Shield in the Category VII (B) - Manufacturing & Trading Sector (Turnover equal to and between Rs 500 Crore and Rs 3,000 Crore) Performance overview & other highlights - The Company has operated all plants, except for Nandesari unit at high utilization rates. The Phenol plant has clocked an average utilization of 117 per cent for the quarter, and achieved highest-ever quarterly domestic sale and highest production per day of phenol - Revenue in the Advanced Intermediates segment increased by 19 per cent Y-o-Y due to sustained healthy demand from key customers, while the rise in EBITDA was 2 per cent, impacted by factors such continued higher input prices not fully passed on to customers, increased power and fuel costs, and higher overhead expenses linked to Nandesari plant restart - The Company registered the highest-ever production of DASDA during Q3. It also attained highest-ever sales volume and turnover of OBA in Q3 FY23; this is a commendable feat achieved in backdrop of uncertain global operating environment - Revenues from the Phenolics segment grew 13 per cent Y-o-Y supported by strong volume growth. Due to moderation in prices of products which was higher last year - The Advanced intermediates business has added sizeable international business including new customers in export business - With increased export revenues, strategic decision to secure certain raw material for assured supply and utilization of surplus funds for advance payment to suppliers, there has been an increase in working capital intensity this quarter - DPL repaid a term loan of Rs 50 crore in the month of October 2022, taking the Company's Net Debt to Equity ratio to 0.07x as compared to 0.20x last year - On a consolidated basis, the Company continues to remain debt-free, with a net worth of Rs 3,860 crore (Consolidated) & Rs 2,528 crore (Standalone), thereby strengthening its balance sheet for future expansion Financial Highlights (Consolidated) Q3 FY2023 Vs. Q3 FY2022 (Y-o-Y) - Revenues grew by 15 per cent to Rs. 2,004 crore in Q3FY23. Strong topline performance was driven by maintaining leadership in market share and geographies. The Company has been highly responsive in order to optimize pockets of opportunities across product categories. Current landscape of realignment of global supply chains and seeking of assured supply by customers has limited the ability to drive higher realizations. - EBITDA stood at Rs. 328 crore in Q3FY23. EBITDA performance was muted on a Y-o-Y basis due to high base of last year combined with continued increase in some input as well as utility costs, including power and fuel. Partial passing on of higher input prices, moderation from extreme highs and productivity enhancements have enabled an improved performance on a Q-o-Q basis. The positive traction to sustain in the upcoming quarters - PAT came in at Rs. 209 crore in Q3FY23. In-line with the operational performance of the Company, Profit after tax is lower on a Y-o-Y basis due to high base of corresponding period last year. On a Q-o-Q basis, the company has driven a significant improvement in profitability. Increased turnover, cost optimization measures and partial passing on of higher inputs have helped grow PAT 9M FY2023 Vs. 9M FY2022 (Y-o-Y) - Revenues were up by 22 per cent to Rs. 6,046 crore in 9M FY23. Strong Revenue growth driven by all round volume increases in the Advanced Intermediates and Phenolics segments. The utilization levels were maintained at high levels with continued improvement through the YTD period. Wallet share for key products have been maintained or increased in some cases due to high competitiveness of the Company - EBITDA stood at Rs. 976 crore in 9MFY23. The EBITDA margin was 16 per cent, impacted by lag effect in passing on the high prices of RM and other utilities. Costs have marginally softened in recent weeks, and this will help in recouping profitability levels. Despite steady demand and strong volume growth, the pricing of products remains largely stable despite significant increase in input prices compared to the base period - Profit after tax de-grew by 23 per cent to Rs. 618 crore in 9MFY23 and has not kept pace with revenue growth due to sharp rise in input price which are being passed on with some lag. Further, profitability in the base period was supported by unusually high realization in certain products which have now normalized Performance Highlights Segmental Performance - Q3 FY2023 Vs. Q3 FY202 (Y-o-Y) - Advanced Intermediates: Despite facing inflationary pressures and logistical challenges, the company was able to actively cater to strong demand and fulfill its delivery obligations thereby delivering strong revenue growth. The Company is expected to maintain its performance momentum given its competitive position with an assured supply of key inputs. Growth in EBITDA on a Y-o-Y basis has trailed the revenue growth due to a sharp rise in input costs compared to the corresponding period last year. This is being proactively addressed as opportunities present themselves. - Deepak Phenolics: DPL experienced strong sales growth as the Phenol plant maintained high operating levels, effectively overcoming significant external challenges in the global environment during the period under review. Hi