Shares of Sudarshan Chemical Industries rose more than 14% intraday on May 24, a day after the company reported strong sequential growth for the quarter ended March.

The dye maker reported a 30% quarter-on-quarter increase in revenue to Rs 692 crore due to strong growth in the pigment export market and recovery in demand. Compared with the same period last year, revenue increased by 10%.

Operating results also improved sequentially as a surge in revenue outpaced a surge in expenses. The company’s EBITDA margin, while down 140 basis points year-over-year, rose 450 basis points sequentially to 12.3% in the January-March period.

The company’s fourth-quarter net profit also nearly tripled quarter-on-quarter to Rs 330 crore on the back of strong operating and revenue growth. The net profit in the corresponding quarter of the previous financial year was Rs 450 crore.

Shares of Sudarshan Chemical Industries were up 13.25% at Rs 445.40 on the National Stock Exchange at 12:49 pm.

The company’s 3.1 million shares changed hands on exchanges, and volume also rose sharply, well above the one-month daily average of 68,000 shares.

Brokerage firm ICICI Securities is also bullish on the company. The company was very surprised by the strong growth in the export market, although it expected the domestic market to improve due to a recovery in demand.

The brokerage is also awaiting more clarity from management on margins, which, despite improving margins, still need to cover a significant portion to hit the sweet spot.

Looking ahead, the company expects a gradual increase in sales from new capital expenditure items to drive growth in the coming quarters.

On top of that, the company is also focused on expanding its product portfolio while focusing on controlling net working capital and inventory to optimize the cash conversion cycle.