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market | IST

Finance Ministry revokes phenol anti-dumping duty: Will it impact Deepak Nitrite?

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The Ministry of Finance has revoked anti-dumping duty on phenol imports from European Union, Singapore and Korean RP. Deepak Nitrite manufactures this particular product. The analysts expect the company to make up for losses by increased exports because the company is producing phenol at higher capacities right now. This would mean a 7-10 percent hit on the bottomline.

The Ministry of Finance has revoked anti-dumping duty on phenol imports. This is with respect to phenol imports from European Union, Singapore and Korean RP. Deepak Nitrite manufactures this particular product.
The analysts are expecting Rs 50-70 crore hit on the bottomline though they are also saying that the imports from these particular geographies is not much.
Additionally, the analysts also expect the company to make up for losses by increased exports because the company is producing phenol at higher capacities right now. This would mean a 7-10 percent hit on the bottomline. However, it is expected that it will be covered by the extra exports that the company could do of phenol.
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According to IIFL, this removal is only on Korea, Singapore and EU but these countries do not have significant exports to the Indian subcontinent.
There is no such impact on ground and prices of various other products like Diamino Stilbene Disulfonic Acid (DASDA) and sodium nitrite have risen sharply. That is something that could offset the negative impact that would come in from this anti-dumping duty revocation.
Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.
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