Praj Industries rises 12% on expansion of bio-energy basket

The stock moved higher by 12 per cent to Rs 154, its highest level since September 22, 2008, on the BSE.

Shares of Praj Industries moved higher by 12 per cent to Rs 154 on the BSE on Friday after the company announced a ground-breaking integrated demo plant of compressed bio gas (CBG). The stock was trading at its highest level since September 22, 2008.

“The company unveiled its roadmap for commercialization of CBG technology and reaffirmed its readiness by way of required infrastructure to execute multiple CBG plants with advanced technology and designs. CBG is a complementary renewable transportation fuel to Compressed Natural Gas (CNG). Praj's CBG technology is a major step in that direction,” Praj Industries said in a press release on Thursday, January 10, 2019, after market hours.

The company is on track with the execution of three bio-refinery projects based on proprietary 2G technology.

Following the introduction of 2G ethanol bio-fuel, the company are now inducting CBG- gaseous renewable fuel technology to the Bio-Energy basket. These two technologies complement each other and will play a key role in India's pursuit of energy self-reliance while reducing carbon footprints significantly, it added.

Meanwhile, Praj Industries had posted 2.5 times jump in its net profit at Rs 12.43 crore during the first half (April-September) of the financial year 2018-19 (H1FY19). Net revenue grew 12% at Rs 443 crore against Rs 394 crore in the corresponding period of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 4.8 per cent from 2.0 per cent.

The company’s order book backlog expanded to Rs 900 crore in Q2FY19 as against Rs 755 crore in Q2FY18. Order inflow for the Q2FY19 stood at Rs 338 crore of which 76 per cent is from the domestic market which was as per expectations on the back of spur in set up/ expansion in distillery capacity by sugar companies.

In past one-month, Praj Industries has rallied 47 per cent, as compared to 2.2 per cent rise in the S&P BSE Sensex.

The counter has seen huge trading volumes with a combined 20.56 million equity shares representing 11.36 per cent of the total equity of Praj Industries changed hands on the NSE and BSE till 01:26 pm; the exchange data shows.