Shares of chemical maker Navin Fluorine International soared in the morning trade on July 25 after the company reported strong earnings for the quarter ended June.
The company’s net profit for the reported quarter rose 33.3 percent on a year-on-year basis to Rs 74.5 crore aided by strong revenue and operating performance.
Navin Fluorine’s revenue from operations rose nearly 22 percent on a year-on-year basis to Rs 397.5 crore, reflecting firm demand conditions in the fluorochemicals market.
What took investors by surprise is the operating performance of the company, when concerns over margins of chemical companies in India are mounting over rising fuel costs.
Navin Fluorine reported a 27.4 percent year-on-year growth in earnings before interest, tax, depreciation and amortisation (EBITDA) to Rs 99.1 crore for the reported quarter.
The strong EBITDA performance also helped the company’s operating margins improve to 24.9 percent in the quarter from 23.8 percent a year ago.
Further, positive commentary from China’s leading fluorine chemical maker Dongyue Group also aided the gains in the stock. The Dongyue Group recently said that it expects to see a significant jump in its net profit this year due to strong demand for fluorines in the international market.
At 10.05 am, shares of Navin Fluorine were up 5.6 percent at Rs 4,001.7 on the National Stock Exchange.
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