Gravita India sales spikes 51 per cent in Q1FY19

Gravita India reported its results for the quarter ended June 30, 2018 on Wednesday. The company's consolidated revenue for the quarter came in at Rs. 304.95 crore, registering 51.4 per cent yoy increase.

The company registered massive jump in revenues from Lead, Aluminium and Turnkey projects by 43.9 per cent, 44.1 per cent and 528.7 per cent yoy, respectively.

EBITDA for the quarter rose by 19.5 per cent yoy to Rs. 22.56 crore with a corresponding margin contraction of 197 bps. EBITDA margin for the quarter stood at 7.4 per cent. This margin contraction was led by sharp jump in cost of materials and employee benefit expenses by 59.2 per cent and 47.3 per cent yoy, respectively.

The PAT for the quarter came in at Rs. 11.99 crore, yoy increase of 9.7 per cent. This slower growth was on account of weaker operating performance. Also, 44 per cent yoy jump in depreciation dragged the company's bottomline.

Gravita has a robust scrap collection network and has collected 25,668 MT of scrap in Q1FY2019 v/s 21,532 MT of scrap collected in Q1FY2018, globally. The production from scrap grew by 59 per cent to 18,781 MT v/s 11,786 MT because of higher production from Semelted divisions Lead, which is an intermediate product, similarly there was higher production from aluminium and plastics.

During the quarter, the company has enhanced Lead smelting capacity at Phagi and Chittoor by 3,000 and 6,000 MT per annum, respectively.

Also, it has enters into contract with Amara Raja Batteries for lead acid battery scrap collection and recycling arrangements. The company has also started Commercial Production of PPCP Granules from its Plant situated at Chittoor, Andhra Pradesh.

The company has given production guidance of around 75000-80000 MT for FY19.

Gravita India is a leader in integrated operations of non-ferrous metals and plastics, having recycling, manufacturing and turnkey business. It derives 62 per cent revenue from international market and 38 per cent from domestic market.

On Wednesday, the stock opened at Rs. 149 per share and made an intraday high of Rs. 155 on the BSE.