Supreme Petrochem Q3 - Stabilisation In The Raw Material Costs Led To Improvement In The Margins: KRChoksey

KRChoksey Research Report

Supreme Petrochem Ltd.’s revenues saw decline in revenue by 8.9% YoY to Rs 11,804 million and on a QoQ basis revenue fell by 4.4%. The muted growth in revenue was on account of lower volume offtake as well as subdued realisations.

Ebitda witnessed a drastic fall of 47.0%YoY; while improved by 51.1% QoQ to Rs 1189 million. Ebitda margin contracted by 723 basis points YoY, whereas it improved by 370 bps QoQ to 10.1%.

The fall in margin was due to a rise in raw material costs and other expenses on a YoY basis, however, raw material prices stabilised during the quarter along with a reduction in freight costs.

Supreme Petrochem's profit after tax stood at Rs 896 million, declining by 45.6% YoY and increasing by 50.2% QoQ. Profit after tax margin contracted by 511 bps YoY and improved by 276 bps QoQ to 7.6%.

The board has also approved a 1:2 split of its existing equity shares.

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