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Shares of Heranba Industries surged 15.6 per cent to an intra-day high of Rs 412 apiece on the BSE on Wednesday after the company said that Gujarat Pollution Control Board (GPCB) has revoked the order directing the closure of the operation at its Vapi’s Pant units.
At 2:06 PM, the stock was quoting 12.7 per cent higher at Rs 401 as against 0.2 per cent rise in the benchmark S&P BSE Sensex.
"With reference to our letter dated May 22, 2023 wherein we had informed that Gujarat Pollution Control Board has issued an Order instructing the Company to prohibit and close the operation at its Vapi’s Pant Unit-I situated at 1504, 1505, 1506, Phase –III, GIDC, Vapi & Unit-II situated at A-2, 2214/ 2215, Phase No-III, Phase –III, GIDC, Vapi. In this respect, we are pleased to further inform that the Said Closure Order has been revoked by GPCB," it informed the exchanges.
Heranba is one of the largest manufacturers of Synthetic Pyrethroids and its intermediates in India. It manufactures a wide range of pesticides including insecticides, herbicides, fungicides, and public health products, and has a wide network of business in India as well as in the world market.
Heranba has fully integrated and modern manufacturing facilities, in the Industrial belt of Vapi & Sarigam, which is a prime Industrial Township in Gujarat, and with an upcoming site at Saykha.
In the March quarter of FY23, the company's standalone net profit plunged 66.33 per cent year-on-year to Rs 14.33 crore. It's revenue from operations, too, declined 26 per cent on year to Rs 259 crore.
Its Ebitda fell 60 per cent YoY to Rs 27 crore, while Ebitda margin contratced 871 basis points to 10.26 per cent.
For the whole FY23, PAT was down 42 per cent YoY to Rs 110.1 crore, revenue 8.7 per cent to Rs 1,324.4 crore, Ebitda 37.4 per cent to Rs 174.6 crore, and Ebitda margin 594 bps to 13.05 per cent.
"The Company's FY23 revenues stood at Rs 1,338 crore restricted by unfavourable global economic scenario, inventory build-up in the system and sluggish demand from key export regions. However, we have witnessed decent traction for our formulation products in both
domestic and export markets. The Ebitda margins remained muted during FY23 due to lower price realization and higher power and fuel costs. Despite of a challenging year, Heranba’s Balance Sheet continues to remain strong with ‘Net Debt Free’ status coupled with healthy
gross cash and cash equivalents balance of Rs 118.6 crore as on March 31, 2023 fuelling the company’s capex plans," said Raghuram K. Shetty, Managing Director of Heranba Industries Limited.
The Company continues to strengthen its product portfolio with new product registrations in both domestic and export markets and leverage its distribution network for delivering growth in the coming years, he added.
So far in the current calendar year, the shares have slipped 29 per cent on the BSE as against 4 per cent rise in the benchmark S&P BSE Sensex. The stock had hit a 52-week hihg of Rs 620 on August 3, 2022, and a 52-week low of Rs 265 on March 29, 2023.
