Sitara Peroxide Announces Result
Ok Sitara Peroxide announced its result today. The company posted an EPS of Rs. 0.19 for the quarter. However, the EPS is not important as it was not part of the forecast. In my last post I had predicted an increase in gross margin based on increasing peroxide prices. The gross margin in fact did increase, up 4 percentage points month on month, to 26%. So this lends credence to the price-gross margin thesis and the same story should continue with increased effect for the September quarter . I guess Ill update the gross-margin, H2O2 Price graph for corroboration:
Not only does does this reinforce the idea of improved financial performance for next quarter, it also bodes well for Descon whose result will be announced on the 30th. It may be noted that SPL was on upper lock today and with Descon booking sizeable gains as well.