Indian chemical manufacturer Deepak Nitrite Limited announced its results for the quarter ending March 31, 2023 (Q4 of FY23). Deepak Nitrite reported a 6.69% YoY growth in standalone revenue at Rs.800.50 crore in Q4 FY23 as against Rs.750.24 crore in Q4 FY22 last year.
The company reported a YoY growth of 4.7% in consolidated revenue in Q4 FY23 at Rs 1,961.36 Crore as against Rs 1,872.35 Crore in the corresponding quarter last year.
Deepak Nitrite reported a standalone profit after tax of Rs 100.57 crore for the quarter ending March 31, 2023, as against Rs 142.70 crore in the quarter ending March 31, 2022.
The company reported a 12.48% YoY decline in Consolidated Profit After Tax in Q4 FY23 at Rs 233.86 Crore as against Rs 267.21 Crore in the same quarter last year.
Deepak Nitrite incurred a total of Rs 541.93 crore in Power & fuel expenses in FY23 as against a total of Rs 438.61 crore in FY22 due to volatility in fuel prices. The company incurred Rs 129.47 in power & fuel expenses in the quarter ending March 31, 2023, as per regulatory filings.
Deepak Nitrite said that the results of the current period are not comparable to the previous periods due to the facilities being damaged due to the fire incident in June 2022.
On 2 June 2022, a fire broke out at Deepak Nitrite’s manufacturing factory located in Nandesari, Gujarat, resulting in damage to the company’s inventory, plant and equipment. After this incident, the company had to face challenges from the state government and authorities. However, the company has completed the restoration work of the damaged facility and fully restarted the plant from October 2022.
The company estimated a preliminary loss of Rs 47.20 crore on account of damage to inventory, plant and equipment and has filed a claim with the insurance company for the incident.
Deepak Nitrite has received interim relief from insurance companies for assets and inventories totaling Rs 25 crore, of which Rs 11.23 crore has been received during the quarter ending March 31, 2023 and the remaining Rs 13.77 crore has been received in the month of April 2023.
The remaining claim has been lodged with the insurance company which is under process, the company said.
The Board of Directors of Deepak Nitrite, in its meeting held on May 11, 2023, has declared a dividend of Rs 7.50 per share for the year ending March 31, 2023. The dividend will be paid within 30 days from the date of the ensuing Annual General Meeting (AGM).