Supreme Petro slumps
Supreme Petrochem is down in the red today morning, reacting to its announcement of its Q3 numbers, slumping to Rs.62.10, its current intra day low.
The stock has fallen after it posted a set of disappointing numbers, YoY, for third quarter ended 31st March 2014. Though the company reported a 4% rise in net sales at Rs.816 crore, its net profit slumped to Rs.10 crore, down 61%. But sequentially the company has turned around as it had posted a loss of Rs.13 crore for Q2.
For the 9M ended 31st March 2014, net profit stands at Rs.23 crore v/s Rs.60 crore in previous 9M and Rs.73 crore for 12M ended 30th June 2013. Thus it is a given fact that it will end this year on a very low note. The company has stated that demand for polystyrene remains low wherein market has shrunk by 14% till end of 9M, mainly on account of 12.5% demand contraction in consumer durables and overall slowdown in economy.
The market is also disappointed with the buyback price, which the company announced yesterday. It plans to buyback 60 lakh shares from the open market for an amount not exceeding Rs.33.75 crore. Supreme Petrochem has set a maximum price of Rs.70 a share, which includes brokerage and other charges and aims to mop up at least 24.10 equity shares through the buyback window.