Gulshan Polyols Limited has provided an update in relation to the decision of esteemed Oil Marketing Companies (OMCs) - HPCL, IOCL and BPCL to provide monetary relief to compensate for higher input cost.
The OMCs confirmed that the companies have announced a six-month relief scheme to support ethanol manufacturers who are facing high input cost, primarily on account of fuel and electricity. The relief package is applicable for all supplies of ethanol invoiced to OMCs between 1st June 2022 and 30th November 2022. The OMCs will pay the relief amount to vendors after each quarter. The relief amount will be based on the feedstock such as a relief of ₹ 1,606/kl from sugarcane juice/sugar/sugar syrup-based ethanol, ₹ 1,493/kl for B-heavy molasses-based ethanol, ₹ 1,179/kl for C-heavy molasses-based ethanol, ₹ 2,337/kl for damaged food grain-based ethanol, and ₹ 1,437 on surplus rice-based ethanol. Since Gulshan produces ethanol from surplus rice and damaged food grains, the applicable relief rate would be ₹ 1,437/kl and ₹ 2,337/kl wherein the effective realisation on Ethanol inclusive of relief scheme for this period will be Rs.58.307/- and Rs.55.257/- per litre, respectively.
Commenting on the notification, the Management quoted that: "This is a positive development and the relief provided is in the right direction to curb the significant impact of the commodity cost headwinds faced by the industry and the Company. We believe that the relief is supportive of profit margins and reflects another show of positive intent of the OMCs to achieve objectives of Ethanol Blending Program."
Shares of Gulshan Polyols Limited was last trading in BSE at Rs. 226.65 as compared to the previous close of Rs. 229.85. The total number of shares traded during the day was 3704 in over 625 trades.
The stock hit an intraday high of Rs. 228.20 and intraday low of 222.00. The net turnover during the day was Rs. 834818.00.