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Shares of Deepak Nitrite fell as much as 10 percent on Thursday after the company reported another weak quarterly performance.

The company's net profit declined over 30 percent from last year. Revenue increased 17 percent but the growth was capped due to the underperformance of the company's Phenolics business.

Revenue from the Phenolics business may have increased 12 percent year-on-year but its operating performance or EBIT more than halved, declining 53 percent from last year to Rs 102 crore. Even when compared to the June quarter, the Phenolics business EBIT is down 45 percent.

More than half of Deepak Nitrite's revenue comes from the Phenolics business.

For the overall business, EBITDA also declined 30 percent in the September quarter while margin contracted over 900 basis points to 13.8 percent.

The company's earnings per share decreased to Rs 12.79 in the September quarter from Rs 18.65 in the September 2021 quarter.

Among other specific business segments, the Advanced Intermediates segment posted revenue of Rs 685 crore compared to Rs 544 crore last year. EBIT for this segment remained flat.

Shares of Deepak Nitrite are trading 9.5 percent lower on high volumes at Rs 2,080. The stock is down 18 percent so far this year.

First Published:Nov 10, 2022 12:41 PM IST