Captain Polyplast reports highest ever quarterly revenue; PAT grows 6.6x

Small-cap firm Captain Polyplast Ltd operates in the industrial sector and has a market valuation of ₹92.95 Cr. The company, which has one of the strongest distribution networks and one of the highest-quality product lines in the micro irrigation sector, has generated strong earnings for the quarter and nine months ended 31 December 2022.

The firm announced its highest quarterly revenue ever, growing by 69% year-on-year to INR 74.5 Cr in Q3 FY23. The quarter's net profit rose by 6.6-fold to INR 2.5 Cr. Captain Polyplast said in a statement that the strong growth in topline was a result of increase in demand for micro irrigation systems from most of the states where it is active. The company further added that with the positive developments for the industry, it aims to report healthy revenue and profit growth in the upcoming quarters.

"Our impressive earnings for the last quarter are a testament to our company's resilience and ability to adapt to changing market conditions," said Mr. Ramesh Kichadia, Managing Director of Captain Polyplast Ltd. "We are immensely proud of our team's hard work and dedication, and we are grateful for their contributions to our success. As we move forward, we remain committed to our strategy of growth and innovation, and we look forward to continued success in the future."

With the purpose of encouraging farmers to use drip and sprinkler irrigation systems, the central government has granted funding under the PMKSY (Pradhan Mantri Krushi Sinchay Yojna) and Atal Bhujal Yojna initiatives. The micro irrigation sector is anticipated to benefit from budget allocations from different CSS (centrally sponsored schemes) and state government initiatives after several significant states have also declared an increase in funding for micro-irrigation.

As a pioneer in the field of micro irrigation, Captain Polyplast Ltd has more than 750 dealers across 16 states, the firm has a wide sales network for micro irrigation systems. The company involves production facilities in Rajkot (Gujarat) and Kurnool (Andhra Pradesh). The firm also offers solar EPC services, in addition to micro irrigation. The company's marketing and distribution network spans 16 Indian states and accounts for around 90% of the country's micro-irrigation market. CPL exports its products to the Middle East, South America, and Africa.

The shares of Captain Polyplast Ltd closed today on the BSE at ₹18.45 apiece level, down by 4.65% from the previous close of ₹19.35. In the last 1 year the stock has fallen 11.51% but on a YTD basis, it has gained 5.73% so far in 2023. The stock touched a 52-week-high of ₹22.40 (25/01/2023) and a 52-week-low of ₹14.65 (17/06/2022).