Supreme Petro
The stock hit a new high yesterday at Rs.152.60 on the back on a very exuberant performance for third quarter ended 31st March 2016 (30th June year ending). On the back of a 23% (YoY) jump in net sales at Rs.809 crore and a major decline in interest outgo, stable raw material prices, the company ended the quarter with a net profit of Rs.54 crore, up almost three times. The company’s sales volume jumped up 30% (YoY). EBITDA came in at 87 crore v/s Rs.28 crore and margins jumped up from 4.26% to 10.75%.
The company had ended this fiscal in 9 months on 31st March 2016 whereas last year, it was a full 12 month ending on 30th June 2015. But even for these 9 months, its net profit of Rs.56 crore surpasses 12-month net profit of Rs.36 crore. Sales volume for the year rose 14% and it expects FY17 to also be equally exuberant with average sales volume growth of 14% though margin growth is expected to moderate around 6-7%.