Deep Polymers Reports Q2 Results with Qualified Auditor Opinion on Trade Receivables

Deep Polymers Limited has announced its unaudited financial results for the second quarter and half-year ended September 30, revealing a mixed performance with some areas of concern highlighted by the auditors.

Financial Highlights

For the quarter ended September 30, Deep Polymers reported:

Revenue from operations of Rs. 2,575.01 crore, up from Rs. 2,540.01 crore in the previous quarter
Net profit of Rs. 174.59 crore, compared to Rs. 144.19 crore in the previous quarter
Basic and diluted earnings per share of Rs. 0.72

For the half-year ended September 30:

Revenue from operations stood at Rs. 5,115.02 crore
Net profit reached Rs. 318.78 crore
Basic and diluted earnings per share were Rs. 1.32

Segment Performance

The company's operations are divided into three geographical segments:

Segment	Revenue (Rs. crore)
Rakanpur	3,965.23
Santej	797.42
Hajipur	518.01

Auditor's Qualifications

The statutory auditors, S N Shah & Associates, issued a qualified opinion on the financial results, highlighting two key concerns:

Trade Receivables: The auditors noted that trade receivables include Rs. 166.72 crore outstanding, for which the company has initiated legal recovery procedures. The auditors believe a provision for doubtful debts should have been made, potentially overstating profits and current trade receivables.
Foreign Currency Restatement: The company has not restated monetary items denominated in foreign currencies at the end of the reporting period, as required by Ind-AS-21. This non-compliance may result in overstatement or understatement of foreign currency denominated items and affect reported profits.

Management's Response

The company's management has stated that they are taking appropriate measures for recovery of the outstanding trade receivables and are hopeful of recovery in the coming financial year. Regarding the foreign currency restatement, management deemed the impact not material enough to significantly affect profitability or net worth but acknowledged the non-compliance and committed to taking appropriate action in the coming year.

Board Meeting

The board meeting to approve these results was held on November 14.

Deep Polymers Limited's performance shows growth in revenue and profit compared to the previous quarter. However, the qualified audit opinion raises concerns about the company's financial reporting practices and potential overstatement of profits. Investors and stakeholders may want to closely monitor the company's actions to address these issues in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.65%	+0.84%	-1.45%	-1.23%	-35.05%	+16.59%

Deep Polymers Limited has announced the commencement of commercial production for its new BOPP Masterbatch product line at its manufacturing facility in Rakanpur, Gujarat. The company officially started production in July 2025, marking a significant expansion in its product offerings and production capabilities.

New Product Line

The newly launched product, "White and Additive Masterbatches for BOPP and CPP films," includes BOPP Masterbatch in White & Additives, Pearlscent & Cavitation Masterbatch. This addition falls under the Flexible and Food Packaging Masterbatches category, catering to both domestic and international markets.

Production Capacity and Revenue Projections

Deep Polymers has installed a production capacity of 10,000 MTPA (Metric Tonnes Per Annum) for the new product line, with provisions to scale up to 20,000 MTPA. The company projects substantial revenue growth from this new venture:

Projection	Amount (in CR)
Monthly Turnover Increase	12.60
Yearly Turnover Increase	150.00

These projections are based on the assumption of running production at full installed capacity.

Facility Details

The new manufacturing unit is located at Block No 727 & 553, Rakanpur (Santej), Ta – Kalol, Dist – Gandhinagar, Gujarat. This strategic location is expected to support the company's production and distribution capabilities.

Market Focus

Deep Polymers is positioning its new product line to serve both domestic and international markets, potentially opening up new revenue streams and market opportunities for the company.

Regulatory Compliance

The company has duly informed the BSE Limited about this development, in compliance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This expansion represents a significant step for Deep Polymers Limited in strengthening its position in the polymer masterbatch market. The substantial projected increase in turnover indicates the company's expectations for strong demand for its new product line.