Shares of this microcap company jumped around 3 percent in Wednesday’s trading session after reporting an increase in net profits by 49 percent YoY. In one year, the shares have delivered around 10 percent returns to its shareholders.
With a market capitalisation of Rs. 593 crores, the share of Shree Pushkar Chemicals & Fertilizers Ltd started Wednesday’s trading session on a flatter note at Rs. 183.70 compared to its previous close of Rs. 183.80. During the trading session the shares hit a high of Rs. 188.45, gaining around 3 percent and are currently trading at Rs. 187 apiece.
Such a bullish movement in the share price was observed after the company announced their October to December results. Looking at the consolidated financial statements, the revenue decreased by 6 percent from Rs. 185.22 percent during the September quarter to Rs. 174.64 crores in the December quarter.
On the other hand, the net profits declined by 9 percent from Rs. 8.45 crores to Rs. 7.63 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 14 percent from Rs. 153.67 crores during Q3FY23 to Rs. 174.64 crores in Q3FY24. In addition, the net profit zoomed by 49 percent from Rs. 5.12 crores to Rs. 7.63 crores during the same period.
The company has completed a Capex of Rs. 174 Crores on a consolidated basis funded through internal accruals. Further, the company has allocated a Capex budget of Rs. 215 crores to enhance the capacity of the Chemical business (excluding acid complex) by way of backward and forward integration and fertiliser business capacity by way of manufacturing complementing products.
Moreover, during the 9M FY24, a total Capex of Rs. 9.7 crores was incurred for the establishment of a Solar Power Plant with a capacity of 3.8 MW DC, while an additional Rs. 20.1 crores in Capex was incurred towards investments in the chemical and fertilisers vertical.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 10.23 percent during FY 21-22 to 3.76 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 12.29 percent to 8.32 percent during the same timeframe.
Furthermore, the net profit margin decreased from 10.11 percent during FY 21-22 to 3.34 percent during FY 22-23.
Headquartered in Mumbai, Shree Pushkar Chemicals & Fertilizers Ltd was incorporated in 1993. The company is engaged in the business of manufacturing and trading chemicals, dyes and dyes intermediates, cattle feeds, fertilizers and soil conditioners.
Written By Vaibhav Patil
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