Navin Fluorine gains on expansion plan

Navin Fluorine International rose 1.45% to Rs 787.10 at 9:56 IST on BSE after the company it will spend Rs 115 crore for the expansion of its current good manufacturing practice capacity at its Dewas facility.

The announcement was made after market hours yesterday, 21 December 2017.

Meanwhile, the S&P BSE Sensex was up 70.67 points, or 0.21% to 33,826.95.

On the BSE, 2,809 shares were traded in the counter so far, compared with average daily volumes of 4,614 shares in the past two weeks. The stock had hit a high of Rs 806.15 so far during the day, which is also a record high for the counter. The stock had hit a low of Rs 784 so far during the day. The stock hit a 52-week low of Rs 472 on 26 December 2016.

 

Navin Fluorine International said that its board approved a capital expenditure of Rs 115 crore towards creating additional current good manufacturing practice (cGMP) capacity and associated infrastructure at its Dewas facilities in Madhya Pradesh.

The expanded capacity will be utilized for the company's expanding contract manufacturing activity for the value added complex chemicals and fluoro intermediates manufactured for innovator pharma companies across the globe. The investment in expansion of the capacity is based on customer enquiries and discussions and in anticipation of future research pipeline of innovators.

The new capacity addition will be similar to the company's existing multi product plant configuration with multistage batch and products processing capabilities. The new capacity is expected to come on stream by June 2019. The capital investment of Rs 115 crore will be funded through a combination of internal accruals and debt.

Net profit of Navin Fluorine International rose 12.3% to Rs 42.87 crore on 19.9% rise in net sales to Rs 218.11 crore in Q2 September 2017 over Q2 September 2016.

Navin Fluorine International is the largest integrated specialty fluorochemical company in India.

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