Recommencement of Kalyan plant helps NPL jump 5 per cent

India’s largest hydrogen peroxide manufacturer, National Peroxide Ltd (NPL) surged as high as seven per cent, during the early trade on Wednesday after it commenced production in one of its facility with effect from February 2, 2020.

The company had planned capex in the range of Rs 200 crore in FY18. The expansion aimed at doubling the current capacity of 95,000 TPA to 1,50,000 TPA. In September 2019, the company had informed through a stock filling that it plans to shut down its Kalyan (Maharashtra) plant for an approximate period of 90 days. The lower product output kept its volume growth very low and revenues declined by nearly 50 per cent. The expansion was expected to be over by December 2019 which was extended till January 2020. Delay in the recommencement of plant resulted in a sharp decline in the stock price. The third quarter results of the company can be expected to be lower due to the shutdown.

On Tuesday, the company reported that its expansion work is over and now, it has started production all over again. However, the company did not mention anything about the capacity levels with which it has started the production.

At 11.45 am, the stock traded with gains of 5 per cent at Rs 1,900 apiece on BSE.