Captain Polyplast has reported a strong performance for the period that ended on December 31, 2022. The micro irrigation player registered a 69 per cent year-on-year (YoY) growth in revenue at Rs 74.5 crore for the December 2022 quarter. It was the company’s highest-ever quarterly revenue.
Also, the company’s net profit for the quarter grew 6.6 times to Rs 2.5 crore, the company said in a separate release.
“The strong growth in topline was a result of an increase in demand for micro irrigation systems from most of the states where the company is active. With the positive developments for the industry, the company aims to report healthy revenue and profit growth in the upcoming quarters,” the company said in its statement.
Shares of Captain Polyplast surge about 6 per cent to Rs 19.20 in Wednesday’s trade over its previous close of Rs 18.20. The scrip has rallied 20 per cent in the last six months.
The micro-irrigation industry is expected to benefit from budget allocations from various CSS (centrally sponsored schemes) and state government initiatives. The central government has allocated budgets under PMKSY (Pradhan Mantri Krushi Sinchay Yojna) and Atal Bhujal Yojna for expanding the adoption of micro irrigation systems such as drip and sprinkler among farmers
Many major states have also announced an increase in allocation towards micro-irrigation. Gujarat government has allocated Rs 1,500 crore to GGRC (Gujarat Green Revolution Company), the state nodal agency dedicated to promoting micro-irrigation.
The industry has also recovered from delays in old subsidy disbursal with the AP government releasing old payments and resuming APMIP (Andhra Pradesh Micro Irrigation Project) aggressively since mid-2022.
Captain Polyplast has a network for sales of micro irrigation systems with more than 750 dealers in 16 states. It also exports its products to countries in Africa, Latin America and the Middle East.
The company has manufacturing facilities at Rajkot (Gujarat) and Kurnool (Andhra Pradesh). Apart from micro irrigation, the company also provides solar EPC services which is another focus sector for the government.
