Bhageria Industries to incur capex of Rs. 100 crore

Bhageria Industries to incur capex of around Rs. 100 crore for backward integration into manufacturing of sulphuric acid at Tarapur, Boisar. The company would incur this capex over the next three years and will be funded through internal accruals. The company has healthy balance sheet with D/E of 0.3x while its cash and bank balance on September 2018 end stands at Rs. 32.37 crore.

The company stated that is has received consent from Maharashtra Pollution Control Board (MPCB) for this expansion. With this capex company will add Sulphuric acid & derivatives capacity of 150 TPD, 25 per cent oleum capacity of 10 TPD, 65 per cent oleum capacity of 30 TPD and Chloro Sulphuric Acid capacity of 30 TPD.

Besides, for expansion of chemical business it has acquired 3.4 acres of land at GIDC, Vapi, Gujarat.

In terms of financials, in Q2FY19 the company reported stellar performance, its net profit during the quarter jumped to Rs. 28.2 crore from Rs. 10.6 crore in the corresponding quarter of last year. While its revenue in the quarter surged 35 per cent yoy to Rs. 121.6 crore.

With this positive development, the stock of Bhageria Industries opened gap up at Rs. 334.6 as against previous close of Rs. 311. At 14.24 hours, the stock was trading at Rs. 316.8 apiece, up by almost 1.8 per cent from previous close.