GHCL hits 52-week high on good Q4 results

The stock rallied 10% to Rs 160, also its 52-week high on the BSE

GHCL has rallied 10% to Rs 160, also its 52-week high on the BSE on back of heavy volumes, after the company reported 56% year on year (YoY) growth in net profit at Rs 78 crore in March quarter (Q4FY16).

The company engaged in manufacturing of industrial chemicals and textiles business had profit of Rs 50 crore in same quarter year ago.

Operational income however remain flat at Rs 650 crore against Rs 641 crore in corresponding quarter of previous fiscal.

Ebitda (earnings before interest, taxes, depreciation and amortization) margins improved by 178 basis points to 27% on account of higher capacity utilization and operating efficiencies.

GHCL said it is on track with its brownfield capacity expansion. The company plans to increase its capacity by one lakh MT in progress and is likely to be completed by Q4FY17. The company sees margins improvement and volume increase in textiles business for FY17.

At 11:23 am, the stock was up 9% at Rs 158 on the BSE. A combined 3.8 million shares changed hands against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.