Shares of this microcap company jumped upto 2 percent in Tuesday’s trading session after they partnered with Sardar Swaran Singh National Institute of Bioenergy in Kapurthala under the Ministry of New and Renewable Energy.
With a market capitalization of Rs. 178 crores, the shares of Organic Recycling Systems Ltd started Tuesday’s trading session on a flatter note at Rs. 230.60 compared to its previous close of Rs. 230.50. During the trading session, the shares hit a high of Rs. 239.90, gaining 2 percent and closed the day at Rs. 230 apiece.
According to the exchange filing, the company informed that they had entered into a Memorandum of Understanding (MoU) with Sardar Swaran Singh National Institute of Bio-Energy (SSS-NIBE), Kapurthala to collaborate on sustainable technology development. The objective of this partnership is to optimize the biogas capacity of Napier grass through anaerobic digestion, thereby supporting the nation’s renewable energy agenda.
Moreover, the company specified that the collaboration would centre on employing co-digestion methods for processing Napier grass and various agricultural residues to produce biogas. Under the MoU, a pilot biogas plant will be set up at ORS’s current Solapur facility to experiment and enhance the biogas production process utilizing Napier grass.
Furthermore, once the co-digestion process has been successfully tested and validated at the pilot scale, the collaboration aims to scale up the technology for commercial use.
On this occasion, Mr Yashas Bhand, CEO of ORS said, “This collaboration represents a significant milestone in our efforts to drive sustainable waste management solutions and renewable energy generation. By combining our expertise with NIBE’s research capabilities we aim to pioneer new pathways for biogas production and drive positive change in the renewable energy landscape of India, contributing significantly to the nation’s sustainable development goals.”
Coming onto the company’s financial statements, the revenue zoomed by 69 percent from Rs. 14.61 crores during FY21-22 to Rs. 24.72 crores in FY22-23. In addition, the net profits showcased a transition from a net loss of Rs. 5.35 crores to a net profit of Rs. 3.65 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 1.35 percent during FY 21-22 to 4.37 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 1.47 percent to 4.21 percent during the same timeframe. Furthermore, the net profit margin increased from 14.59 percent during FY21-22 to 36.17 percent during FY22-23.
Headquartered in Maharashtra, Organic Recycling Systems was incorporated in 2008. It is an engineering company focused on environmental solutions and providing waste management solutions across waste types and across the value chain.
Written By Vaibhav Patil
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