Vikas Ecotech rose 1.56% to Rs 5.20 after the company announced an investment in green renewable energy systems to support the electricity requirement of its manufacturing facilities in Rajasthan, India.
The company will add solar power generating system of 172 kwp capacity, which will cost about Rs 1.05 crore which in turn will decrease the electricity bills by about Rs 0.21 crore per annum, thus, aiding better cost efficiency for the manufacturing plant. This system will be fully established and operational starting a direct contribution to the business economics by April 2022.
Vikas Ecotech's Rajasthan plants already have a time-tested solar power generating system of 290 kwp capacity of electric power supporting the Rajasthan facilities. The new addition will take the total annual savings to Rs 0.50 crore, wiz. about 33% of the average electricity costs. The company aims to enhance its reliance on renewable energy systems targeting a electrically self- sufficient manufacturing unit by the year 2025.
The recent reductions in the bank debt and the reduced load of the interest thereon, clubbed with the savings offered by the renewable energy systems will offer a definite and considerable economies and provide an edge to the company businesses as soon as the forthcoming F.Y. 2022-23.
On a standalone basis, Vikas EcoTech reported a net profit of Rs 3.43 crore in Q3 FY22 as compared to a net profit of Rs 0.02 crore in Q3 FY21. Net sales surged 165% to Rs 75.26 crore in Q3 FY22 over Q3 FY21.
Vikas EcoTech is a specialty chemicals and plastic & rubber additives player. It provides IPR-driven compounds and specialty chemicals that are non-toxic. It derives a majority of its revenues from PVC industry additives like Organotin stabilizers and from specialty compounds.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
