Fine Organic Industries rose more than 7% in morning trade on May 25, a day after the chemicals company posted a 40.7% year-on-year rise in net profit to Rs 149.4 crore for the January-March period. Net profit for the same period last year was Rs 106 crore.

While the top line remained weak, top-line growth was helped by a strong improvement in operating margin. Revenue fell 21.4% year-on-year to Rs 596.6 crore from Rs 759.5 crore in the corresponding period of the previous fiscal.

However, the EBITDA margin widened to 34% from 21.2% a year earlier.

In all four quarters of fiscal 2023, the company’s net income and EBITDA margins increased year-over-year. The third quarter was the worst quarter-over-quarter.

At 10:36 am, Fine Organic Industries traded about 1% higher at Rs 4,542.05 on the National Stock Exchange. The stock hit an intraday high of Rs 4,822.45 in the first hour, prompting investors to take some profits and take the stock off its highs.

Over-the-counter volumes also surged as 100,000 shares changed hands on the exchange, well above the one-month daily average of 24,000 shares.

The stock has delivered a strong return of more than 134% over the past year.