Jyoti Resins and Adhesives hit an upper circuit limit of 20% at Rs 1414.35 after the company's net profit rose 25.38% to Rs 4.89 crore on 51.74% rise in net sales to Rs 48.86 crore in Q3 December 2021 over Q3 December 2020.
The stock was currently frozen at its record high level.Profit before tax rose 40.61% to Rs 6.89 crore in Q3 December 2021 as against Rs 4.90 crore in Q3 December 2020.
EBITDA surged 178.7% to Rs 6.61 crore in Q3 December 2021 over Q3 December 2020. EBITDA margin stood at 13.52% in Q3 December 2021, higher than 7.36% in Q3 December 2020.
Total expenses jumped 41.49% to Rs 42.42 crore with cost of materials consumed soaring 102.61% to Rs 29.54 crore during the period under review.
The company said that hardening of raw material prices due to supply disruptions and sharp increase in freight rates led to compression in gross margins. A 9% price increase taken in January 2022 will help reduce impact of raw material price increase, it added.
Owing to sharp demand and growth in products, the firm has undertaken the process to increase its production capacity further from 1500 TPM to 2000 TPM. The company is also planning to setup a warehouse for enhancing storage of raw materials and finished goods.
It is looking to expand its reach in a few more states as well as increase its penetration in existing states with increase in branches and distributors. During the quarter company has forayed into Assam. The company said it continues to be debt free.
Jyoti Resins and Adhesives is a manufacturer of synthetic resin adhesives. The company manufactures various types of wood adhesives (white glue) under the brand name of EURO 7000. Currently it services 12 states in India through 25 branches and 50 distributors, catering to 10,000 retailers and 3 lac carpenters across India.
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