Deepak Nitrite share surged nearly 4 per cent to hit an all-time high of Rs 1,989.20 on the Bombay Stock Exchange after the chemical manufacturing company reported better-than-expected earnings during the March quarter of 2021.
However, the share shed all early gains amid profit booking. At 11:15 hours, it was quoting at Rs 1897.15, down 0.51 per cent on BSE. The stock has given 149 per cent returns over the last six months and risen 262 per cent over the last 12 months.
The company reported a 68.4 per cent rise in net profit to Rs 290 crore for Q4 FY21 compared to Rs 172 crore in the corresponding quarter of the previous year.
Revenue from operations increased 39 per cent to Rs 1,463 crore for the quarter ended March 2021, compared to Rs.1,055.5 crore for the corresponding quarter of the previous year. Revenue from the phenolics segment grew 76.57 per cent to Rs 937.53 crore in Q4 FY21 over Q4 FY20.
For FY21, the company reported a 27 per cent jump in consolidated net profit to Rs 775.81 crore from Rs 611.03 crore posted in the year ended March 2020 (FY20). Revenue from operations grew 3.1 per cent to Rs 4359.75 crore in FY21 over FY20.
Earlier, the company said that successful vaccine diplomacy by the Indian government has helped to elevate the status and competence of the Indian manufacturing sector in the eyes of the world, which is expected to have a multi-layered impact. Immediate impact will be the continued shift from China to India for manufacturing chemicals which is already evident and which holds potential for further acceleration in upcoming quarters. The second-order impact will be from the growth of the domestic market.
"India is already a lucrative market for the chemical industry and Deepak Nitrite is an ideal aspirant to ride on the India chemical manufacturing theme alongside its diversified product mix with decades of manufacturing experience," it added.