Thread by @ValueEducator

#Deepaknitrite Q3 2022 Concall Highlights 🧪🧪

Operational Highlights

1. The revenue for the quarter was ₹1748 cr it was up 41% YoY as against ₹1240 Cr in same quarter previous year

2. EBITDA margins stood at 22% translation to EBITDA of ₹378 Cr
Continued robust revenue momentum was fuelled by solid growth trajectory in Phenolics

3. In Q3 FY22, the company has achieved highest ever top line in a quarter, both on standalone and consolidated basis

4. Business segments are interwoven, this means that if prices of

BI increases, you may see a simultaneous dip in FSC segment, as internal product transfers take place at market prices. This year has been very strong for BI segment.

5. In FSC segment, as most are long term contracts, there is some lag in passing the input costs

6. In 9MFY22 volumes grew by 10% partially because of brownfield expansion

7. Evaluating opportunities to develop expertise in levels of fluorination and photochlorination.

8. China is the largest manufacturer of certain commodities but most of it is captively consumed, so it doesn't really impact much to the domestic capacities

9. Phenol and acetone will remain strong in further quarters

10. Last year was covid period, thus it is essential to understand that YoY volume growth is with the base of covid year and thus seems to be higher

11. Captive consumption of phenol is around 20-25% and expected to rise upto 40-45%, post expansion

12. Having dominant wallet share and market position in operating geographies with most of the products having 75-80% market share

13. Rise in crude price have impacted the propylene prices

14. Revoke of anti dumping duty does not affect the business

Fine & Specialty
1. Fine & Speciality Chemicals revenue stood at ₹206.66 cr down by 2% YoY
2. The performance of the FSC segment must be seen in light of significant challenges linked to logistics.

3. In addition to this, the Company witnessed elevated raw material costs from BC segment

Performance Products
1. Performance product segment stands to benefit from demand supply asymmetries

2. Performance Products Revenue was ₹169.88 cr up by 88% YoY

3. Momentum in DASDA demand is seen, resulting in higher realisation and OBA was also able to pass on this increase in DASDA costs

Phenolics

1. Phenolics revenue stood at ₹1,033.11 cr up by 38.3% YoY

2. Capacity utilisation was 117%

3. Company plans to bring in downstream products of phenol in FY 22-23

Capex

Brownfield expansion of IPA was commissioned on 19th December 2021. This has doubled the IPA capacity to 60,000 MTPA