The stocks of Rain Industries surged by 12 percent in the trading session on Friday. This came in after the firm reported a rise in its net profit by 54.8 percent at Rs 106.52 crore. In the same quarter last fiscal, the company reported a net profit at Rs 68.81 crore.
The company’s net sales declined 9.35 percent to Rs 2,897.65 crore as compared to the previous year’s quarter. Moreover, Earnings before interest, tax, depreciation, and amortization (EBITDA) held at Rs. 460.23 crore. Therefore, a hike by 24.1 percent from Rs 370.84 crore in the same quarter last fiscal.
The company’s stock price was rallying at Rs. 78.25, high by 12.5 percent at 13.04 IST. Thus, there has been a steady rise in the stock price in the past 7 days.
As per reports, the company’s healthy performance in the quarter was because of increased margins. Moreover, this was the result of working through high-cost raw material than in the first quarter last fiscal. In addition, appreciation of USD against the Indian Rupee also helped in the strong results.