Deepak Nitrite Q2 Profit Declines by 5.31% Year-on-Year

Deepak Nitrite
Image Courtesy: Deepak Nitrite

Deepak Nitrite reported its Q2 2024 results on November 13, showing a mixed performance for the period. The company’s revenue rose by 14.28% year-on-year, reaching ₹2,032 crore. However, net profit saw a decline of 5.31% year-on-year, falling to ₹194.19 crore.

Compared to the previous quarter, both revenue and profit experienced a downturn. Revenue decreased by 6.22% quarter-on-quarter, and profit fell by 4.12%, prompting concerns about the company’s ability to maintain growth amid changing market dynamics.

Operating expenses also saw an increase, with selling, general, and administrative costs up by 1.84% from the previous quarter and 14.47% from the same quarter last year. This rise in expenses likely contributed to the drop in profit margins.

Operating income declined by 4.84% quarter-over-quarter and 5.24% year-over-year, suggesting challenges in sustaining profitability amid higher costs. Earnings per share (EPS) stood at ₹14.24, a decline of 5.32% compared to the same period last year, potentially affecting investor sentiment.

Over the past week, Deepak Nitrite’s stock has dropped by 12.39%, while the company posted a modest 2.86% return over the last six months and 0.5% year-to-date. The stock’s performance raises questions about its future direction in light of the recent financial results.

As of November 14, 2024, Deepak Nitrite’s market capitalization is ₹34,010.97 crore, with its shares trading between a 52-week high of ₹3,169 and a low of ₹2,021. The fluctuations in its share price reflect mixed investor reactions to the company’s financial performance.

Deepak Nitrite Limited, a flagship company of the Deepak Group, is a leading Indian chemical manufacturer renowned for its diversified portfolio of products serving multiple industries, including pharmaceuticals, agrochemicals, textiles, and performance materials. Established in 1970, the company has grown into a significant player in the chemical sector, offering a wide range of intermediates, fine, and specialty chemicals.

With state-of-the-art manufacturing facilities and a strong emphasis on sustainability, innovation, and operational excellence, Deepak Nitrite has established itself as a trusted partner for both domestic and international clients. The company is committed to driving growth while addressing the dynamic needs of the global chemical industry.