Gravita India rose 1.23% to Rs 206.10 after the company informed that its step-down subsidiary based in Mozambique, East Africa, has started commercial production of aluminium from its new recycling plant.
The aforementioned plant's annual aluminium recycling capacity is around 4,000 million tonnes per annum (MTPA) and it also has a lead recycling facility, with a capacity of 4,500 MTPA. The subsidiary is also in process of setting up of a new plastic recycling unit in Mozambique, the company said.
Gravita is expecting an additional revenue of approximately Rs 50 crore per annum coupled with gross margins of approximately 18% from this aluminium recycling plant. The capacity expansion of this plant will help company to change its sales mix by increasing the ratio of aluminium business.
The Group has made investment of approximately Rs 2 crore for procuring and commissioning of this new recycling plant, which is invested from internal accruals of the company. The said plant has been set up on a leased premise keeping in view of judicious use of capital & lean capex policy of Gravita.
The company will be procuring domestic aluminium scrap for the purpose of production from this plant and it will cater the needs of aluminium die casting components manufacturing industries of auto & FMCG sector located in South and East Asian markets.
Gravita India is a leader in integrated operations of non-ferrous metals and plastics having recycling, manufacturing and turnkey business in 8 countries of Asia, Africa and South America Continent. The company enjoys patronage of its products in more than 59 countries. It is one of the largest lead producer in India.
The company's consolidated net profit surged to Rs 21.78 crore in Q1 FY22 from Rs 3.88 crore in Q1 FY21. Net sales during the quarter rose 72.71% YoY to Rs 446.38 crore.
The scrip extended gains for third consecutive session. The stock has added 4.14% in three sessions, from its recent closing low of Rs 197.90 recorded on 8 September 2021.
In the past three months, the stock has zoomed 74.83% while the benchmark Sensex advanced 11.14% during the same period.
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