Supreme Petrochem jumps 4% after board approves expansion of Nagothane plant

NEW DELHI – Shares of Supreme Petrochem soared 4 per cent in early trade on Friday after the board of the petrochemicals player approved the Phase II expansion of its expandable polystyrene (EPS) plant at Nagothane, Maharashtra by 30,000 MTA.

The cost for these capital expenditure schemes will be met from the company's internal accruals.

Supreme Petrochem’s counter rose to a high of Rs 751.70 as against Rs 722.75 at the previous close on the National Stock Exchange.

The Board has also approved the setting of second-line of Extruded Polystyrene Board (XPS) with the capacity of 1,00,000 M3 and increasing the Masterbatch and Compounds capacity by 50,000 MTA, reports said.

Supreme Petrochem manufactures general-purpose polystyrene, speciality polystyrene, masterbatches, high impact polystyrene and compounds, reports said, adding that the company exports its products to more than 100 countries around the world.

The company reported a 71.56 per cent increase in growth in total revenues for the October-December quarter on a consolidated basis at Rs 1,190.76 crore. The revenues were higher by 13.64 per cent on a sequential basis compared to Rs 1,047.79 crore in April-June of 2021.

The strong performance in the top line was driven by an increase in demand due to business activity in user industries getting back to normal as well as higher price realizations due to a sharp rise in international crude oil prices, reports said.