Deepak Nitrite (DEEPAKNTR) Q4 01/02 earnings summary

Executive summary

• FY02 sales and other income reached Rs 217.58 crore vs Rs 212.01 crore; gross turnover rose 6% to Rs 211.57 crore, while operating profits improved.

• The shift from bulk intermediates to higher-margin fine chemicals, cost control and productivity measures supported performance amid a difficult industry backdrop.

Financial highlights

• Sales, excluding excise duty, were Rs 211.57 crore vs Rs 200.18 crore; exports increased 15% to Rs 59.30 crore from Rs 51.74 crore.

• Gross profit before interest, depreciation and tax was Rs 29.20 crore vs Rs 29.13 crore; net profit after adjustments was Rs 7.90 crore vs Rs 10.23 crore.

• Profit before tax was Rs 9.38 crore vs Rs 11.13 crore; proposed dividend rose to 30% from 25% on 57.5 lakh equity shares.

• Other income included Rs 7.46 crore profit on sale of fixed assets and a Rs 0.31 crore provision write-back.

Outlook and guidance

• Strategy remains focused on fine chemicals, value-added products, upward integration and R&D-led process expertise to support future growth.

• Exports reached over 20 countries; management expected cost reduction and a higher-value product mix to sustain growth.

• New value-added products were developed, with ongoing scale-up and yield improvement work based on market feedback.