Deepak Nitrite rallies 4% as government mulls anti-dumping duty on IPA imports from China

Deepak Nitrite shares gained 4.73% to hit a high of ₹3,093.75 on NSE after the reports. However, the stock pared its early gains to trade flat at ₹2952 at 3:00 PM. More than 8 lakh shares of the company changed hands on the bourse.

According to reports, the government has recommended an anti-dumping duty on imports of IPA (isopropyl alcohol) from China.

Isopropyl alcohol (IPA) is used in industries such as pharmaceuticals, cosmetics, personal care and household. China is a major supplier of IPA to India. Chemicals company Deepak Nitrite also sells IPA in the local market.

Deepak Fertilisers and Petrochemicals Corporation Ltd, in September 2023, had filed an application before the Directorate General of Trade Remedies under the Commerce Ministry for an anti-dumping investigation on imports of IPA from China PR.

The company alleged that material injury was being caused to the domestic industry due to the dumped imports originating in or exported from China. The company had requested the imposition of anti-dumping duties on the imports of IPA from China PR.

The DGTR launched a probe on September 29, 2023.

Deepak Nitrite has reported a 35% jump in net profit to ₹203 crore in the April-June quarter compared to ₹150 crore in the year-ago period.

Revenue from operations rose 23% year-on-year to ₹2,167 crore in the April-June quarter, compared to ₹1,768 crore in the year-ago quarter.

Its EBITDA or operating profit rose by 47% to ₹309 crore in the first quarter compared to ₹210 crore in the year-ago period.

At around 3:15 PM, Deepak Nitrite shares trades 0.11% lower at ₹2,950.40 a piece on NSE after trimming the early gains. Shares of the company have surged more than 20% in 2024 so far. In the past one year, Deepak Nitrite shares have given returns of 50%.