The shares of this microcap company surged by 14 percent in Monday’s trading session after reporting an increase in net profit by 1,657 percent QoQ. In one year, the stock has delivered more than 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 68.2 crores, the shares of Super Crop Safe Ltd started Monday’s trading session on a higher note at Rs. 17.40 compared to its previous close of Rs. 15.04. During the trading session, the shares hit a high of Rs. 17.48, gaining around 14 percent and are currently trading at Rs. 17.04 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company announced its Q1FY25 results. Quarterly, the revenue surged by 22 percent from Rs. 8.10 crores during the March quarter to Rs. 10.19 crores in the June quarter. In addition, the net profits magnified by 1,657 percent from Rs. 7.48 lakhs to Rs. 1.23 crores during the same period.
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Comparing the same metrics on a YoY basis, the revenue jumped by 77 percent from Rs. 5.81 crores during Q1FY24 to Rs. 10.19 crores in Q1FY25. On the other hand, the net profits zoomed by 583 percent from Rs. 18.16 lakhs to Rs. 1.23 crores during the same timeframe.
For Q1 of FY 2024-25, EBITDA reached Rs 1.38 crores, a significant increase from Rs 32.96 lakhs in Q1 of FY 2023-24, reflecting a year-over-year growth of 321 percent. Additionally, the EBITDA margin for Q1 of FY 2024-25 improved to 13.56 percent, compared to 5.64 percent in Q1 of FY 2023-24.
Management Commentary:
Commenting on the performance Mr Ishwarbhai B. Patel, Chairman & CEO, of Super Crop Safe Ltd., said, As the demand will increase our financial numbers will improve manifold due to the considerably healthy operating margin we enjoy.
The demand in Q1FY 24 -25 gradually saw a decent growth resulting in the substantial increase in our sales, profit and margin. We continue to focus on our high-margin products like SuperGold and others.
In the course of time, many of our products are now well established in the market and getting overwhelming response. The forecast regarding Monsoon is also positive and we hope Kharif as well as Rabi season will be better.
We are sure to keep the momentum continue in the months and years in future also. Certainly the performance of Q1 will be repeated again with far better numbers and margin.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 4.92 percent and a return on capital employed (RoCE) of 6.88 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 4.26 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 37.54 percent. The remaining 62.46 percent of shares are held by Retail Investors.
Company Profile:
Established in 1987, Super Crop Safe Ltd is a manufacturer and exporter of a wide range of agrochemicals and pesticide formulations, including insecticides, fungicides, weedicides, plant growth regulators, and bio-fertilizers, with a focus on developing innovative solutions to enhance crop health and productivity.
Written By Vaibhav Patil
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