Gravita India Limited today announced its results for the Second Quarter ended 30th September, 2018.
Highlights for the Quarter
1. Gravita expands production capacity of its plant situated at Chittoor, Andhra Pradesh.
Gravita India has 11 recycling plants across the world. The revenue for the Second Quarter ending September rose by 30% to 292.72 crores rupees.
Revenue from operations during the quarter was Rs. 292.72 crores (Q2FY2019) v/s Rs. 224.67 crores (Q2FY2018), an increase of approx 30% y-o-y primarily due to higher production.
During the half year ended September 30th, 2018 Gravita's Revenue rose by 40.25% to 597.67 crores corresponding from Rs. 426.14 crores half year ended September 30th, 2017.
For H1FY2019, company at consolidated level reported EBITDA and Profit After Tax (PAT) of Rs. 36.92 crores and Rs. 17.55 crores respectively v/s EBITDA of Rs. 44.65 crores and PAT of Rs. 24.11 crores respectively in H1 FY2018.
During the quarter LME prices were on downward trend and company was holding opening inventory for its manufacturing cycle of approximately 15 days therefore inventories of higher cost is accounted for in cost of goods sold. The company is re-assessing its hedging strategy looking into the dynamic markets.
The hiring of professionals for each SBU for expansion of business and targeted revenue for next 2-3 years increased the manpower cost for the period. In addition to that the performance appraisals for FY 2018-19 and performance incentive for retention of manpower also increased the manpower cost.
During the quarter, the Company has hedged pre-shipment credit in foreign currency (PCFC) with certain highly probable transactions and opted to follow hedge accounting. Accordingly, the exchange difference of Rs 0.89 Crores (net of deferred tax of Rs. 0.48 Crores) on the effective portion have been accounted for in other comprehensive income. Amount of exchange difference will be re-classified to income statement as and when the highly probable transactions are executed and recorded in the income statement.
Domestic scrap industry is expected to shift from unorganized to organize because of implementation of GST and E-Way Bill in the coming months. India generates ~ 1.1 Mn MT of lead acid battery scrap every year, of which organized recyclers recycle ~ 40% of available scrap. Stricter environmental norms by various governments including public awareness about recycling benefits are key drivers of growth in recycling industry. Our recycled production is expected to in the range of 75000-80000 MT in FY2019.
Shares of GRAVITA INDIA LTD. was last trading in BSE at Rs.76.15 as compared to the previous close of Rs. 75.8. The total number of shares traded during the day was 2515 in over 42 trades.
The stock hit an intraday high of Rs. 77.15 and intraday low of 75.1. The net turnover during the day was Rs. 191274.