Gravita India reports lacklustre Q3FY19

Gravita India reports lacklustre Q3FY19

Gayathri Udyawar
/ Categories: Trending, DSIJ News

Gravita India reported a weak set of number for the December quarter. The company's earnings per share (EPS) for the quarter stood at Rs. 0.05 as against Rs. 1.48 in the corresponding quarter a year ago.

The company's consolidated revenue for Q3FY19 came in at Rs. 305.07 crore as against Rs. 240.89 crore, registering 26.6 per cent yoy increase. The increase in revenue is due to a 37 per cent growth in the sales volume, despite the LME prices witnessing a dip of more than 5 per cent impacting realisations.

On a segmental basis, the company's revenues from Lead was at Rs. 260.61 crore as against Rs. 205.59 crore; Aluminium was at Rs. 27.33 crore as against Rs. 16.34 crore and Turnkey projects was at Rs. 4.13 crore as against Rs. 10.83 crore.

EBITDA for the quarter was at Rs. 10.15 crore. The PAT for the quarter came in at Rs. 0.36 crore. Profits declined due to a restatement of core inventory, change in the production mix with higher capacity utilisations at its Indian facilities against its overseas facilities which run at lower margins. Additionally, due to issues at Chittoor facility during the quarter, the recoveries were lower and conversion cost per ton was higher, reported the company. But reassured that the recoveries at Chittoor.

Going forward, improvements in scrap procurement and production is expected to aid revenues. The company has projected recycled production in the range of 75,000 to 80,000 MT in FY2019.

Gravita India engages in the recycling, manufacturing of non-ferrous metals and plastics and other turnkey business. 

On Friday, the stock of Gravita India opened at Rs. 59 per share and made an intraday high of Rs. 63.75. At 12:11 hours, the stock was trading at Rs. 61.45 per share, down marginally by 0.16 per cent on BSE.

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