Linc Pen and Plastics is locked in 20% upper circuit at Rs 178, extending its Monday’s rally, after reporting a 28% year on year (yoy) jump in net profit at Rs 4.07 crore in September (Q2) quarter, due to lower interest burden. The company had registererd a profit of Rs 3.17 crore in the year ago quarter.
EBITDA or operating profit margin expanded by over 100 bps to 8.1% in July-September quarter from 7% in the corresponding quarter of previous fiscal. Net sales grew 2.3% to Rs 81.86 crore on yoy basis.
Meanwhile, the company said it aims to target Rs 100 crore in export earnings during FY15.
Export earnings stood at Rs 39.30 crore in first half (April – September) of FY15.
The company also said, it is targeting a further 10% reduction in working capital levels by reducing inventory and debtors. Automate assembly operations of two more focus products (including Linc Twinn) from Q4, with resultant improvement in productivity and profitability.
With softening crude prices, the company expects resultant benefits (with a time lag of two to four months), if prices continue to stay at lower levels (more than a third of the raw materials used are crude-based), Linc Pen said in a quarterly update.
In past two trading sessions, the stock rallied 44% from Rs 124 on BSE on November 11. The trading volumes on the counter surged nearly six-fold with 440,000 shares changed hands till 1300 hours. There are pending buy orders for 68,389 shares on BSE.
EBITDA or operating profit margin expanded by over 100 bps to 8.1% in July-September quarter from 7% in the corresponding quarter of previous fiscal. Net sales grew 2.3% to Rs 81.86 crore on yoy basis.
Meanwhile, the company said it aims to target Rs 100 crore in export earnings during FY15.
Export earnings stood at Rs 39.30 crore in first half (April – September) of FY15.
The company also said, it is targeting a further 10% reduction in working capital levels by reducing inventory and debtors. Automate assembly operations of two more focus products (including Linc Twinn) from Q4, with resultant improvement in productivity and profitability.
With softening crude prices, the company expects resultant benefits (with a time lag of two to four months), if prices continue to stay at lower levels (more than a third of the raw materials used are crude-based), Linc Pen said in a quarterly update.
In past two trading sessions, the stock rallied 44% from Rs 124 on BSE on November 11. The trading volumes on the counter surged nearly six-fold with 440,000 shares changed hands till 1300 hours. There are pending buy orders for 68,389 shares on BSE.
