Company Update : Deepak Nitrite Ltd By Motilal Oswal Financial Services Ltd
Miss on EBITDA (ex govt. incentive income); DPL drives earnings
* Revenue stood at INR21.8b (our est. INR19.2b, up 3% YoY). This includes a government incentive income of INR1.6b.
* EBITDA stood at INR3.2b (our est. of INR1.9b, up 5% YoY). EBITDA adjusted for government incentive income was INR1.6b (18% below our estimate).
* Gross margin was at 30.6% (down 10bp YoY), while EBITDAM stood at 14.5% (vs 14.2% in 4QFY24).
* Reported PAT stood at INR2b (our est. of INR1.1b, down 20% YoY).
* In FY25, revenue was at INR82.8b (+8% YoY), EBITDA at INR10.9b (-2% YoY), and reported PAT at INR7b (-14% YoY).
* EBITDAM was at 13.2% (-140bp YoY).
* The BoD has approved a final dividend of INR7.5/ share for FY25.
* It has also approved the appointment of Shri Subimal Mondal as Group CHRO w.e.f. 28th May’24 for a period of three years.
* He has a Bachelor of Mechanical Engineering from Jadavpur University, Kolkata, and an MBA in Marketing from the University of Ljubljana, Slovenia.
* He has 39 years of experience and was last associated with IOCL, where he retired as ED (HR).
Segmental EBIT details
* Phenolics’ EBIT margin stood at 15.6%, with EBIT at INR2.4b.
* Advanced Intermediates’ (AI) EBIT margin was at 6.9%, with EBIT at INR449m.
* The revenue mix of Phenolics stood at 70% in 4QFY25, with the Advanced Intermediates share at 30%.
* The EBIT mix for AI was at 16% from 39% in 4QFY24.
* Contribution from Phenolics was at 84% (from 61% in 4QFY24).
* In FY25, AI’s revenue stood at INR25.3b (-7% YoY), while DPL’s revenue stood at INR58.1b (+16% YoY).
* AI’s EBIT was at INR1.8b (-61% YoY), while DPL’s EBIT was at INR7.8b (+22% YoY).
* AI’s EBIT margin was at 7% (-940bp YoY), while DPL’s EBIT margin was at 13.5% (+60bp YoY).
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