Gravita India Limited PAT up by 114% in FY20

Key financial highlights of the FY20

- Revenue INR 1347.80 Cr
- EBITDA INR 97.47 Cr
- PAT INR 33. 18Cr
- EPS INR 4.82
- Sales Quantity: Lead 77,470 MT, Aluminum 8,046 MT & Plastics 11,793 MT

Key financial highlights of the Q4-FY20

- Revenue lNR 379.26 Cr
- EBITDA INR 28.99 Cr
- PAT INR 12.61Cr
- EPS INR 1.83
- Sales Quantity: Lead 22,397 MT, Aluminum 2,534 MT & Plastics 3,104 MT

Operational Highlights

During F.Y. 2020 the consolidated revenue of the company increased by 9% as compared to last F.Y. 2018-19 and Profit after tax stood at Rs. 33.18 Cr with an exceptional growth of 114%. Operational efficiency, product - market mix and capacity optimization led to improved profit margins. Further, during the year company has started Lead recycling facility in Ghana and Lead & Aluminium recycling facilities in Tanzania.

During the year, the sales volume of Lead division has increased by 19% coupled with 18% increase in Lead production. Additionally there was 71% increase in sales volume of Lead Alloys and 77% increase in sales volume of Value Added Products which resulted in better margins. In Q4 FY 2020, the company's consolidated revenues increased by 44% Y-o-Y with net profit of Rs. 12.61 Cr against loss of Rs.0.58 Cr in corresponding quarter of previous year. The increase in Net Profit of the company during Q4 FY 2020 is due to efficient working of manufacturing facilities based in Africa. Additionally, sales volume also increased by 48% in Lead and 34% in Aluminium division.

The company has hedged both buying and selling in Lead on I 00% basis and also hedged its inventory due to which company has been able to maintain stable margins despite of 8% fall in Lead metal prices.

Mr. Rajat Agrawal, Managing Director, Gravita India Limited said, "During FY 2020 the company has been able to achieve excellent figures due to process optimization and focused approach towards product & market mix. Further the newly established Lead & Aluminium recycling facility in Tanzania performed rationally well. We expect the momentum of the growth to be continued in the coming quarters."

Shares of GRAVITA INDIA LTD. was last trading in BSE at Rs.45.65 as compared to the previous close of Rs. 45.8. The total number of shares traded during the day was 13583 in over 288 trades.

The stock hit an intraday high of Rs. 47.5 and intraday low of 43.45. The net turnover during the day was Rs. 621589.

Source : Equity Bulls

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