Supreme Petrochem spurts after turnaround Q3 results

Supreme Petrochem rose 14.06% to Rs 115.20 at 11:47 IST on BSE after the company reported net profit of Rs 26.44 crore in Q3 December 2015 as against net loss of Rs 58.94 crore in Q3 December 2014.

The result was announced after market hours on Friday, 22 January 2016.

Meanwhile, the BSE Sensex was up 135.05 points, or 0.55%, to 24,570.71.

On BSE, so far 2.68 lakh shares were traded in the counter, compared with an average volume of 35,659 shares in the past one quarter. The stock hit a high of Rs 121.20 and a low of Rs 108 so far during the day. The stock hit a record high of Rs 136 on 5 August 2015. The stock hit a 52-week low of Rs 62.55 on 31 March 2015. The stock had underperformed the market over the past one month till 22 January 2016, sliding 10.78% compared with 4.51% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 19.97% as against Sensex's 10.45% fall.

The small-cap company has an equity capital of Rs 96.50 crore. Face value per share is Rs 10.

Supreme Petrochem's net sales declined 1.75% to Rs 600.50 crore in Q3 December 2015 over Q3 December 2014.

Supreme Petrochem announced after market hours on Friday, 22 January 2016, that its board of directors has approved the modification of one of the three Polystyrene (PS) producing lines at the plant in villages Amdoshi, Wangani, Maharashtra into a swing line capable of producing 42500 TPA of SMMA (Styrene Methyl Methacrylate) in addition to PS. The technology for the modification of the PS line and production of SMMA will be from Polysty Inc. USA. The cost of the project, including hardware and technology fee should be around Rs 6 crore and will be met from internal accruals. The plant start up is expected by end of 2016 and the estimated payback period is two years.

In a separate announcement after market hours on Friday, 22 January 2016, Supreme Petrochem announced commencement of operations at Chennai plant, which was disrupted due to floods. On 3 December 2015, the company announced that the operations of its Expandable Polystyrene (EPS) plant at Chennai was disrupted due to heavy rains and floods. Later on 11 January 2016, the company announced that it had commissioned the main plant.

In the latest announcement, Supreme Petrochem said that it has lodged an initial claim of Rs 10.92 crore with the insurance company. The insurance company-appointed surveyors work is in progress. Since the company has adequate insurance cover on reinstatement cost basis for fixed assets and on cost basis for raw materials and stores and on selling price basis for finished goods, the management does not expect any financial loss on account of the same. The company is also insured for "Loss of Profit" during the period the plant operations were shut, the company said in a statement.

Supreme Petrochem is the leader in polystyrene business in the Indian market place. The company is also the largest exporter of polystyrene from India. Polystyrene is widely employed in the food-service industry as rigid trays and containers, disposable eating utensils, and foamed cups, plates, and bowls.

Powered by Capital Market - Live News