Shares of Finolex Industries are the highest they've been in 10 months. Know why

Shares of Finolex Industries Ltd., a maker of plastic pipes, hit their highest level in 10 months after the company's quarterly profit surged on the back of lower depreciation and fuel costs.

Finolex said its first quarter Net Profit rose 40 percent to 70.2 crore rupees compared with 50.2 crore rupees in the same quarter a year ago. Sales during April-June fell 4.4 percent to 633.4 crore rupees from 662.7 crore rupees in the year ago period.

Finolex rose 13 rupees, or 5 percent to 298 rupees, its highest since Nov 13th, on the National Stock Exchange, where 7.22 lakh shares were traded by 2:40 pm compared with the 5-day average of 46,000 shares.

Finolex's market capitalisation has risen 13 percent in the past one year to 3,770 crore rupees.

Image credit: Indiatimes