With crude oil dropping to levels of around USD 48.38 per barrel, market participants are wondering on how crude derivatives will perform going forward.
Brent Crude was trading around USD 51.44 per barrel.
Gokul Jaykrishna, Joint MD of Asahi Songwon Color says lower crude prices will augur well of their business in particular. The company will pass on the benefits of the falling crude prices to their customers, he says in an interview to CNBC-TV18.
With the fall in oil prices and good growth coming in from US and India, Jaykrishna is upbeat on maintaining current margins. He also expects a slight uptick in topline in the fourth quarter.
The total income in third quarter FY17 was up 26.8 percent at Rs 56.7 crore versus Rs 44.7 crore for the same quarter of last fiscal. EBITDA Margins for Q3FY17 stood at 21.9 percent versus 15.4 percent Q3FY16. Net profit for the quarter too was up 54.8 percent at Rs 6.5 crore versus Rs 4.2 crore same period last fiscal.
Answering a query on inorganic expansions, Jaykrishna says nothing has been materialised as yet.
The company currently has around Rs 25 crore as cash on books and would be spending around Rs 3.69 crore on the interim dividends. The Company had announced an interim dividend of Rs 3 per share.For the full interview watch video