Profit before tax in Q3 FY25 was at Rs 135.2 crore, down 50.58% as against Rs 273.59 crore reported in the same period a year ago.

EBITDA for the third quarter of FY24 stood at Rs 190 crore, registering a decline of 40.25% compared to Rs 318 crore in Q3 FY23. EBITDA margin reduced to 10% in Q3 FY25, compared to 16% recorded in the corresponding quarter previous year.

On the segmental front, the revenue from advanced intermediates was at Rs 551.69 crore (down 18.18% YoY), while revenue from phenolics stood at Rs 1,365.74 crore (up 1.22%) during the period under review.

Deepak C. Mehta, chairman & managing director, said, “Normally the business cycles of AI and phenolics are generally such that on an overall basis they complement each other. This is the first time we are experiencing both businesses going through short-term challenges. I am happy we have been able to achieve yet another milestone in phenol capacity utilization. Domestic production now more or less matches domestic demand, and as the market accepts the new normal, margins should improve.

On the AI business segment, the world has been going through de-stocking in the agro-chem business. As an intermediate supplier, we have been impacted with a lag. As we see agrobusiness picking up again, it is a matter of time when our performance will be back to normal.

New products in the group, including upstream products like nitric acid and downstream products like MIBK and MIBC, should be coming into operations in the next few months. In the meantime, our long-term plan for the polymer business is rapidly taking shape.

Having entered into long-term agreements for pipeline supply of critical feedstock and contracted to acquire German assets for the final product, viz., polycarbonate resins, we are actively working to complete the entire value chain. India continues to import almost 300 kta of polycarbonate resin. Deepak will be producing about 160 kta in the first phase.

All our projects are targeted to be completed by the end of FY2028. Overall, we remain committed to investing in strategic growth initiatives, including new product development and targeted market expansion, to ensure long-term value creation for our shareholders.”

Deepak Nitrite produces a spectrum of chemicals, including agrochemicals, colorants, rubber, pharmaceuticals, specialties, and fine chemicals. The company manufactures chemical intermediates to serve the domestic and international markets with high-quality products made in a responsible and sustainable manner.