In a strong start to the trading day on November 8, Deepak Nitrite witnessed a significant surge of over 5 percent in its shares. This notable uptick was propelled by the company’s robust performance in the July-September quarter, where its net profit experienced a substantial 17.50 percent increase, rising from Rs 174.50 crore to Rs 205.10 crore compared to the same period last year.
The boost in net profit was primarily attributed to the company’s enhanced operational efficiency, facilitated by a reduction in raw material costs. This positive development resulted in the expansion of Deepak Nitrite’s EBITDA margin to 17 percent during Q2, a notable improvement from the 13.8 percent reported in the corresponding period of the previous fiscal year.
Adding to the company’s favorable financial standing, Deepak Nitrite made a strategic move by acquiring a 31.70 percent stake in Deepak Oman Industries (SFZ) LLC. This acquisition, valued at Rs 16.6 crore, played a crucial role in Deepak Nitrite’s bottom line growth for Q2 FY24. Deepak Oman Industries (SFZ) LLC has been accounted for as an associate of Deepak Nitrite, further bolstering the company’s overall performance.
As of 12:52 pm, Deepak Nitrite’s shares were trading at ₹2,161.70 on the National Stock Exchange, reflecting a notable increase of 2.96 percent.
