The shares of this ethanol manufacturer gained 6 percent to ₹180.90 per share on Wednesday after the company received an order to supply country liquor in three districts of Madhya Pradesh.
At 11:40 a.m., Gulshan Polyols Ltd. shares were trading at ₹165.55 a share, a 2.87 percent decrease over the previous close price. The company has a market capitalization of ₹1,041 crore on the stock exchange.
Gulshan Polyols received an order against tender floated by the Excise Department, The government of Madhya Pradesh is to supply country liquor for an approximate quantity of 66.2 lakhs proof liter in three districts of Madhya Pradesh, i.e. Chhindwara, Balaghat, and Singrauli, for the financial year 2024-2025. The company mentioned this in its exchange filing.
Gulshan Polyols Ltd. is one of the largest manufacturers of precipitated calcium carbonate and sorbitol in India. It is India’s leading manufacturer of Ethanol/Biofuel, Grain and Mineral based specialty products.
The firm has witnessed a 12 percent annual growth in revenue, climbing from ₹331 crore in Q3FY23 to ₹371 crore in Q3FY24. Conversely, the net profit has seen a 61 percent decrease, dropping from ₹11.5 crore to ₹4.65 crore.
The company serves a diverse range of industries, including pharmaceuticals, personal care products, footwear, tires, rubber, plastics, paints, alcohol, value-added paper, agrochemicals, as well as food and agricultural products. Among its notable clients are Colgate-Palmolive, Hindustan Unilever Ltd, Dabur, Asian Paints, and ITC.
The company is looking at a total capex of ₹ 4,500 million over the next 12 months, out of which ₹ 3,000 million will be required to set up the 500 KLPD Ethanol plant in the state of Madhya Pradesh and ₹ 1,500 million for expanding the aggregate capacities across the grain processing division.
Further, the company has estimated an additional capex of ₹1,850 million is to be deployed for the ethanol plant in Assam over the next 24 months. The company has funded this capex through a loan of ₹1,700 million from HSBC Bank for the ethanol facility in Madhya Pradesh and from the proceeds of the Qualified Institutions Placement (‘’QIP’’) and internal accruals.
In Q3 FY23, EBITDA experienced a 31.4% decline, dropping from ₹352.3 Mn to ₹241.8 Mn, and the margins contracted from 12.0% in Q3 FY22 to 7.2% in Q3 FY23.
This decline was attributed to increased commodity prices affecting raw materials and power & fuel costs. Despite this, when compared sequentially, the margins maintained stability, remaining at 7.2% in Q3 FY23 from 7.3% in Q2 FY23.
Written by Omkar Chitnis
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