Shares of Aarti Surfactants soared more than 17% in morning trade on April 28, a day after the company reported stellar fourth-quarter earnings.

The company’s net profit nearly tripled to Rs 469.60 lakh in January-March from Rs 237.54 lakh a year earlier.

Net profit rose sharply as operating margins improved due to lower raw material costs.

The sharp rise in profit was accompanied by solid revenue, which rose 4.2% year-on-year to Rs 157.84 crore in the fourth quarter, compared to Rs 15,140.21 crore a year earlier.

Shares of Aarti Surfactants were trading at Rs 698.50 on the National Stock Exchange at 10:35 am, up 13.84% from the previous close.

The volume also remained strong, with 200,000 shares changing hands, compared with a one-month daily average of 97,000 shares.

For FY23, Aarti Surfactants posted an even bigger increase in net profit at Rs 12.7 crore, up from Rs 5.49 crore in the previous financial year.

Easing input cost pressures and a strong demand environment have recently helped the company’s fortunes, with the stock up more than 66% over the past month.