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Systematix Research Report
Deepak Nitrite Ltd.’s Q2 FY25 result disappointed on our estimates, as healthy performance in the phenolics segment (in line) partly offset the continuing more than-expected weakness in Advanced Intermediates segment.
The company's high dependence on the Phenolics segment could keep its earnings volatile, given the expected ongoing weakness in AI.
Consolidated revenue at Rs 20.3 billion was up 14% YoY and down 6% QoQ but missed our estimate by 7%. Phenolics delivered strong 29% YoY growth (down 1% QoQ). Ebitda margin contracted 236 bps YoY but improved 37 bps QoQ to 14.6%. Ebitda and PAT fell short of our estimates by 6% and 9%. Higher interest expenses (135% YoY) added to profitability pressure.
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