DEEPAKNTR - Deepak Nitrite Limited Share Price

Here are the major questions and their answers from the Q&A section of the earnings transcript:

Question 1: "In the Advanced Intermediates business, we've seen some volume erosion from peak levels. How much has fallen from those peak volumes?"

Answer: "In Q2, we basically sent close to zero volumes due to an intense inventory destocking over several quarters. Customers were focused on releasing their own inventory, which severely impacted our intermediates. Overall, these products were noticeably absent from our Q2 results."

Question 2: "What do you anticipate for volume recovery in the second half based on customer interactions?"

Answer: "We are cautiously optimistic. Most customers await clarity around U.S. tariffs and crop conditions. We expect volumes to improve beyond the near-zero levels of Q2, with a noticeable uptick beginning this month or next. There are ongoing discussions for volumes across various geographies."

Question 3: "How do our ammonia contracts stand, and how are we addressing storage and transportation costs?"

Answer: "We have diversified sourcing for ammonia, importing as needed and utilizing domestic suppliers. Historically, our storage was minimal, but we've recently doubled capacity, allowing for approximately 15 days of consumption. This will help minimize costs moving forward."

Question 4: "Regarding the capacities for the WNA and CNA plants, could you share the operationalized capacities?"

Answer: "We will produce roughly between 250-270 tons per day for both WNA and concentrated acid. Demand dynamics will influence whether this output covers captive consumption or allows for market sales."

Question 5: "What will be the Y-o-Y growth for phenol, particularly in Q2?"

Answer: "Growth in Q2 was modest at about 2-3%. Seasonal factors affected production, so we expect more efficient operations in H2. Previous growth targets have been surpassed, but challenges in sales also impacted these results."

Question 6: "Can you provide a revenue and profitability outlook for the next quarter or fiscal year?"

Answer: "We remain cautiously optimistic about H2, expecting better performance driven by improved market sentiment and the commissioning of investments in Deepak Chem Tech."

Question 7: "How does the new R&D center enhance flexibility in capital investments amidst market volatilities?"

Answer: "The R&D facility allows us to develop new chemistries and optimize existing processes quickly. It helps us to adapt rapidly to market changes, reducing the risks associated with substantial long-term CAPEX."

These summaries capture the essence of each discussion point while conforming to the character limit.