Apcotex rallies 31% in 4 days post Q4 results; stock zooms 80% in a month

Better procurement of raw materials and implementation of cost-saving projects over the last few months and the year assisted in bolstering the margins of the company in Q4FY21

Shares of Apcotex rallied 9 per cent to hit a new high of Rs 314 on the BSE in intra-day trade on Tuesday, up 31 per cent in the past four trading days after the firm reported a strong set of numbers for the quarter ended March 2021 (Q4FY21). In the past one month, the stock has zoomed 80 per cent as compared to a 1 per cent decline in the S&P BSE Sensex.

The company achieved its highest ever quarterly revenues, EBITDA, and profit after tax numbers during the quarter, with exports also logging the best-ever numbers. There was strong demand across most industries.

For Q4FY21, Apcotex Industries posted an over seven-fold jumped in net profit at Rs 22.6 crore on the back of strong operational performance. The company has recorded a profit of Rs 3.1 crore in Q4FY20. Operational revenue during the quarter grew 61.7 per cent year-on-year (YoY) to Rs 186.90 crore from Rs 115.60 crore in the year-ago quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margins expanded 922 basis points (bps) to 16.05 per cent from 6.83 per cent posted in same period last year. On a sequential basis, operating EBITDA margins improved 129 bps from 14.76 per cent.

The company said the customer and product mix has been optimised in the quarter, with better procurement of raw materials and implementation of cost-saving projects over the last few months and the year assisted in bolstering the margins. The company has scaled up of production/sales of XNB latex for Gloves from existing plants with both plants running at near full capacity, it said.

Apcotex Industries is a leading producer of synthetic rubber (nitrile rubber, high styrene rubber, nitrile polyblends and nitrile powder) and synthetic latex (XSB latex, VP latex, styrene acrylics and nitrile latex) in India. The company has one of the broadest ranges of emulsion polymers available in the market today. The various grades of synthetic rubber find application in products such as automotive components, hoses, gaskets, rice de-husking rollers, printing and industrial rollers, friction materials, belting and footwear.