Supreme Petrochem rallies 7% as it recoups much of its last trading sessions losses
Supreme Petrochem is a joint venture between Supreme Industries Ltd and the Rajan Raheja Group. SPL is the leader in the Polystyrene business in the Indian market with a share of more than 50%.
Supreme Petrochem Ltd has declared the result for the quarter that ended June 30, 2022, on October 27. It posted net revenue from operations at Rs 1231.76 which saw muted growth of 3.57% YoY. It however degrew on a QoQ basis by 17%. The muted performance was on account of lower realisations and volume offtake.
The EBITDA (Excluding Other Income) decreased by 55.29% YoY to Rs 78.69 crore in Q1FY23 from Rs 176.02 crore a year ago. Sequentially, it was down by 18.24%. PAT also fell by 53.06% and stood at Rs 59.65 crore on a YoY basis, sequentially it was down by 68.46%. EBIDTA margins contracted significantly by 841 bps YoY and 361 on QoQ at 16.94. The fall in margin was due to a rise in raw material costs and other expenses on one hand and lower realisations on the other. PAT margins declined 584 bps YoY and 790 bps on QoQ at 4.83%.
The company has declared an interim dividend of Rs 4 per equity share( face value of Rs 4) entailing an outgo of Rs 37.61 crore. The record date for the same has been fixed as November 4.
It has also announced a split of its shares from a face value of Rs 4 to 2 each fully paid up, subject to shareholders’ approval. The record date for the stock split will be intimated in due course.
The stock witnessed a sharp meltdown triggered by its weak financial performance for the quarter that ended September 30, 2022, shedding 5.7% on October 27 and 28. Shares of Supreme Petrochem, today however opened on a positive note and touched a day’s high of Rs 735 and are currently trading at Rs 733 a piece at 11.30 am with a gain of 6.71%.
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