Deepak Nitrite Limited reported its Q2 FY25 financial results, reflecting solid revenue growth but a decline in net profit and margins, primarily impacted by the performance of its advanced intermediates segment. While revenue grew year-over-year (YoY), the company’s profitability took a hit as margins compressed.
Key Financial Highlights:
- Revenue from Operations:
- YoY: ₹2,032 crore, a 14.3% increase from ₹1,778.03 crore in Q2 FY24.
- QoQ: Revenue declined by 6.2% compared to ₹2,166.84 crore in the previous quarter, Q1 FY25.
- Net Profit:
- YoY: ₹194.2 crore, down 5.3% from ₹205.08 crore in the same quarter last year.
- QoQ: A 4.1% decline from ₹202.53 crore in Q1 FY25.
- EBITDA Margin: Margins fell by 230 basis points YoY due to pressures in the advanced intermediates segment, affecting overall profitability.
Summary
Deepak Nitrite’s Q2 performance highlights challenges in maintaining profitability despite revenue growth, with advanced intermediates dragging earnings and margins. The YoY and QoQ decline in net profit and margin contraction reflect the need for cost management and strategic adjustments in the company’s product mix. Investors should watch Deepak Nitrite closely as it addresses these challenges and aims to stabilize profitability in upcoming quarters.
