Deepak Nitrite - Leading Indian producer of Sodium Nitrate
The company dictates 80% domestic market share in sodium nitrite and 50% market share in nitro toluene. Also, nitro toluene acts as a key raw material for the Performance Chemicals segment. The end-user applications of DNL’s products vary from agrochemicals, dyes, and pigments to pharmaceuticals, rubber chemicals, refinery, textile, and colorants.
In FY 2019-20, the Company invested 270 Crores towards initiatives on capacity expansion and debottlenecking of existing plants. This expenditure also covers the new 125-acre land purchased at Dahej during the year. This land is strategically located surrounded by key suppliers and customers paving the path for ample opportunity for growth.
Improved Financial Ratio
The company demonstrated strong all-around performance led by healthy growth across its Strategic Business Units (SBUs). On a Standalone basis, revenues climbed to 2,230 Crores, 25% higher than the previous year.
EBITDA registered at 804 Crores, up by 161% from the previous year resulting to EBITDA margins of 36%, higher by 18.77%. Profit Before Tax (PBT) was recorded at 706 Crores, up by 232% from last year. Profit After-Tax (PAT) stood at 544 Crores, representing an improvement of 294% compared to FY 2018-19.
Capacity Build-up
With future CAPEX to be incurred largely through internal accruals, the Free Cash Flow to the Firm (FCFF) should turn positive. On the back of sustained CAPEX, debt in absolute terms will largely remain flat.
In FY 2019-20, the Company invested 270 Crores towards initiatives on capacity expansion and debottlenecking of existing plants. This expenditure also covers the new 125-acre land purchased at Dahej during the year. Deepak Phenolics, which is now in the process of safe scaleup to capacity. DPL had it first full year of operations in FY 19-20, wherein its Phenol production volumes were just short of 200,000 tons or above 90% capacity utilization.