Deepak Nitrite gains over 2% ahead of its Q3 earnings today

Shares of Deepak Nitrite in Thursday's session (February 13, 2025) traded higher by nearly 2 per cent or Rs 36.1 at Rs 2,239 apiece on the BSE. However, at the day's high the stock gained over 2 per cent to Rs 2,255.05. The specialty chemicals stock has been moving higher ahead of its Q3 earnings later today after market hours.

Zee Business research analysts estimate the company to largely post steady earnings for the December quarter on the back of weakness in phenol-acetone spreads. The consolidated net profit for the December quarter to decline 5.9 per cent year-on-year (YoY) to Rs 190 crore, while it was Rs 202 crore in the same period last year.

Revenue at the midcap company is also seen to decline 0.4 per cent on-year from Rs 2,009 crore reported in the December quarter of the FY24 to Rs 2,000 crore during the reporting quarter.

Furthermore, analysts forecast EBITDA or earnings before interest, taxes, depreciation and amortisation to also fall 3.4 per cent on-year to Rs 294 crore, in comparison to Rs 304 crore in the corresponding period of the previous year.

Margin, also, is estimated to see a drag by 0.5 per cent or 50 basis points and come in at 14.7 per cent during the review quarter due to the weak performance of the Advanced Intermediates segment.

However, the key monitorable in the company's Q3 earnings will be the demand outlook for phenol in the domestic markets.

Deepak Nitrite Q2 results

In the September quarter, the company's profit declined 4.1 per cent QoQ to Rs 194 crore in Q2FY25 from Rs 203 crore in Q1FY25. The revenue for the review quarter also dropped 6.2 per cent sequentially to Rs 2,032 crore, against Rs 2,167 crore in Q1FY25.

Deepeak Nitrite share price performance

In the last one year, share price of Deepak Nitrite has remained steady, while on a year-to-date (YTD) basis it has declined over 10 per cent.