Thread by @ValueEducator

A Short thread on management execution- A case study on #DeepakNitrite 🧪🧪

Like & Retweet for Better reach !

Example 1:

In Q4FY11 Concall, the management mentioned that the Dahej greenfield project (for
forward integration of DASDA) and some brownfield expansion in the Nandesari plant these
two projects will help the company to exceed Rs 1,000 crore revenues in the next
two years.

At that time their revenues were around Rs 660 crores in FY11. And after two years i.e., if we check their FY13 annual reports we get to know that their revenues stood at around Rs 1,095 crores. So the management guidance was perfectly achieved.

Example 2:

In Q1FY18 concall, the management gave the guidance that the phenol plant will achieve capacity utilization of around 70-75% in the first year of operation. But Deepak Phenolics achieved capacity utilization of over 80% within 5 months of operation.

And after that they achieved over 100% capacity utilization in phenol. Phenol is a commodity product but still the company was able to successfully execute the project due to its cost competitiveness.

Example 3:
In 2018 the company’s Promoter and Chairman & Managing Director Deepak Mehta stated that they have set a target of $1 billion turnover in the next three to four years. Average USD INR rate was around Rs 68 at that time.

So their target was to achieve around Rs 6,800 crores of revenues in 3-4 years. After 4 years in 2022 Deepak Nitrite achieved revenues of Rs 6,802 crores.

Example 4:
Also when Deepak Nitrite announced the phenol project when it had fixed assets of only around Rs 456 crores and it announced a Rs 1,200 crore capex which was revised to Rs 1,400 crores later.

So there were questions on execution of the project but Deepak Nitrite executed the project extremely well.

With above examples we can understand execution capabilities on Deepak Nitrite Management

Like & Retweet for better reach !

Micro Cap Club : valueeducator.com/micro-cap-club/