Deepak Nitrite Shares Drop 2.02% Despite Revenue Growth in FY25
Deepak Nitrite shares fell 2.02% to ₹1,567.90, ranking among top Nifty Midcap 150 losers. The company reported mixed FY25 results with revenue growing 7.81% to ₹8,281.93 crores but net profit declining 14.00% to ₹697.37 crores. Profitability margins continued their downward trend with net profit margin dropping to 8.42% from 10.55%. Despite balance sheet expansion and maintained dividend of ₹7.50 per share, declining profitability metrics reflect operational challenges.
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Deepak Nitrite shares experienced a decline of 2.02% to ₹1,567.90 in Friday's trading session, positioning the stock among the top losers on the Nifty Midcap 150 index. The chemical company's stock performance reflects mixed financial results despite revenue growth in the fiscal year 2025.
Financial Performance Overview
The company reported contrasting results for FY25, with revenue growth accompanied by declining profitability. The following table summarizes the key annual financial metrics:
| Parameter: | FY25 | FY24 | Change (%) |
|---|---|---|---|
| Revenue: | ₹8,281.93 crores | ₹7,681.83 crores | +7.81% |
| Net Profit: | ₹697.37 crores | ₹810.86 crores | -14.00% |
| EPS: | ₹51.12 | ₹59.45 | -14.02% |
| BVPS: | ₹395.06 | ₹353.57 | +11.73% |
| ROE: | 12.93% | 16.90% | -397 bps |
Quarterly Performance Analysis
The quarterly results demonstrate significant volatility in the company's performance throughout FY25. The March 2025 quarter showed the strongest performance with revenue of ₹2,179.69 crores and net profit of ₹202.50 crores.
| Quarter: | Revenue (₹ crores) | Net Profit (₹ crores) | EPS (₹) |
|---|---|---|---|
| Q4 FY25 (Mar): | 2,179.69 | 202.50 | 14.84 |
| Q3 FY25 (Dec): | 1,903.40 | 98.13 | 7.19 |
| Q2 FY25 (Sep): | 1,901.89 | 118.75 | 8.71 |
| Q1 FY25 (Jun): | 1,889.88 | 112.25 | 8.23 |
Profitability and Margin Analysis
The company's profitability margins have shown a declining trend over the past five years. Net profit margin decreased to 8.42% in FY25 from 10.55% in FY24, while operating margin fell to 11.83% from 13.45%.
| Margin Type: | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Gross Profit Margin: | 14.19% | 15.61% | 16.77% | 24.20% | 29.09% |
| Operating Margin: | 11.83% | 13.45% | 14.68% | 21.58% | 25.59% |
| Net Profit Margin: | 8.42% | 10.55% | 10.68% | 15.68% | 17.79% |
Balance Sheet and Financial Position
The company's balance sheet reflects expansion with total assets increasing to ₹7,717 crores in FY25 from ₹6,096 crores in FY24. Fixed assets grew substantially to ₹4,103 crores from ₹3,066 crores, indicating significant capital investments.
| Balance Sheet Item: | FY25 | FY24 |
|---|---|---|
| Total Assets: | ₹7,717 crores | ₹6,096 crores |
| Fixed Assets: | ₹4,103 crores | ₹3,066 crores |
| Current Assets: | ₹3,297 crores | ₹2,841 crores |
| Current Ratio: | 3.57x | 3.62x |
| Debt to Equity: | 0.22x | 0.05x |
Corporate Actions and Dividend
Deepak Nitrite announced a final dividend of ₹7.50 per share on May 28, 2025, maintaining the same dividend rate as the previous year. The company has a history of corporate actions including stock splits and bonus issues, with the most recent stock split occurring in 2014 when the face value was reduced from ₹10 to ₹2.
Market Performance
With the current trading price at ₹1,567.90, the stock reflects market concerns about declining profitability despite revenue growth. The company's inclusion in the Nifty Midcap 150 index underscores its significance in the mid-cap segment, though recent performance has placed it among the index's top losers.
Historical Stock Returns for Deepak Nitrite
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.82% | +3.62% | -5.36% | -11.11% | -27.18% | +70.67% |
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