Credit Bulletin
June 08, 2022 | Mumbai
Update on Deepak Nitrite Limited
 

On June 02, 2022, a fire broke out in the warehouse segment of the company’s Nandesari plant located at GIDC, Vadodara at around 6:00 am. The fire was brought under control within a couple of hours with the support of local authorities. There were no casualty and injured people were provided with required treatment.  As per our understanding from the management, the main damage occurred to the inventory lying in the warehouse while plant and machinery remained unaffected. Also, quantum of loss is currently being ascertained. However, both loss of assets as well as business is completely backed by insurance. Currently, the operations at the plant have been shut down owing to necessary safety checks and shall resume operations shortly post receipt of approval from local regulatory authorities.

 

CRISIL Ratings will continue to monitor developments in this regard and will remain in discussion with the management to understand the likely implications, if any.

 

The ratings continue to reflect the DNL group’s healthy business profile driven by long track record and market leadership across most of its product segments, benefits expected to emanate from recent commissioning of large phenol manufacturing capacity at DPL, diversified revenue profile and improving operating efficiency. The ratings also factors in the group’s improving financial risk profile because of healthy accruals and strong debt metrics. These strengths are partially offset by moderate working capital requirement and susceptibility to volatility in spreads between the pricing of the feedstock and the finished products in DPL.

 

For accessing the previous rating rationale, refer to the following link:

Company name

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Deepak Nitrite Limited

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Criteria Details
Links to related criteria
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Chemical Industry
CRISILs Criteria for Consolidation

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