The Indian specialty chemical substances sector, valued at $64.5 billion in 2024, is projected to develop at a CAGR of three.8 p.c, reaching $92.6 billion by 2033. This development 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 26,361.36 crore, on Friday, the shares of Deepak Nitrite Ltd closed at Rs 1,932.75 per share, elevated 6.98 p.c as in comparison with the earlier closing value of Rs 1,806.60 apiece.
Matter Rationalization
Deepak Chem Tech Restricted (‘DCTL’), a cloth wholly owned subsidiary of Deepak Nitrite Restricted, inter alia thought of and authorised organising manufacturing advanced to provide Phenol & Acetone, lsopropyl Alcohol, and associated infrastructure/utilities with the combination funding of round Rs 3,500 Crores which shall be funded by means 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 stated assembly additionally authorised organising a multi-purpose manufacturing facility with a capital outlay of round Rs 220 Crores for specialty fluorochemicals.
Monetary Efficiency
The corporate reported a lower of 5.2 p.c YoY in income from operations from Rs 2,009 crore in Q3FY24 to Rs 1,903 crore in Q3FY25. Their Internet income decreased by 51 p.c YoY from Rs 202 Crore to Rs 98 crore over the identical interval.
Strategic Tasks
The corporate is launching new merchandise from current belongings to spice up This autumn income and margins. A nitric acid advanced will contribute from Q1 FY26, whereas a brand new R&D middle opens by This autumn FY25. Upcoming integrations like MIBK and MIBC by H1 FY26 help vitality, life sciences, and import substitution objectives.
Margin Steering
The corporate expects margin restoration as demand stabilizes and new initiatives ramp up. Administration anticipates profitability to normalize between Q1 and Q2 FY26, with This autumn exhibiting a big enchancment over Q3, indicating a optimistic turnaround and gradual return to more healthy margins within the coming fiscal 12 months.
Firm profile
Deepak Nitrite Restricted is engaged within the manufacturing and buying and selling of chemical substances. The Firm operates by means 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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