Gravita India gains 4 per cent on capacity expansion

Gravita India informed the bourses on Friday that its subsidiary, Recyclers Ghana Limited has enhanced its production capacity of lead recycling plant located at Ghana, West Africa.

The company has enhanced the production capacity of its existing Lead Recycling Plant from 6,000 MTPA to 12,000 MTPA. The company has started commercial production of lead from this plant (6000 MTPA) from June 2019 onwards.

This plant would help the company save logistics cost on the battery scrap, which is currently imported to India, processed and re‐exported to various countries. This will also help the company to reduce its working capital cycle.

The company has invested around Rs. 21 crore for this plant which was funded through internal accruals.

During the recent quarter Q1FY20, the consolidated revenue came in at Rs. 264.36 crore as against Rs. 304.95 crore in the corresponding quarter last year, registering 13.3 per cent yoy decline. EBITDA for the quarter fell by 33.7 per cent yoy to Rs. 14.95 crore as against Rs. 22.56 crore in the corresponding quarter last year, with a corresponding margin contraction of 174 bps. EBITDA margin for the quarter stood at 5.7 per cent. PAT for the quarter came in at Rs. 2.52 crore as against Rs. 11.99 crore in the corresponding quarter last year, yoy decline of 79 per cent.

The overall production during the quarter has increased by 12 per cent yoy. During Q1FY20, company has able to procure 20,093 MTPA of Battery Scrap evidencing a growth of 27 per cent yoy.

On Friday, the stock opened at Rs. 47.00, up by 4 per cent from its previous close of Rs. 45.20 on the BSE.