Leading global recycling company with strong expertise in the recycling of used batteries, Lead scrap, Aluminum scrap, and many others jumped 3 percent in the day’s trade upon commencing commercial production of Recycled Aluminum Alloys in Africa, along with plans to double capacity.
Price Action
With a market capitalization of Rs. 16,440 Crores, the shares of Gravita India Limited were trading at Rs. 2230.25 per equity share, up 2.5 percent from its previous day’s close price of Rs. 2,176.30.
What Happened
Gravita India Limited has announced that its step-down subsidiary Recyclers Ghana Limited situated in Ghana, West Africa has started commercial production of Recycled Aluminum Alloys from its new recycling plant having an annual capacity of around 4,000 MTPA, in phase I setup with an investment of Rs. 6.75 Crores., with plans to increase the capacity of said plant to upto 8,000 MTPA.
It will be procuring domestic aluminum scrap for the purpose of production from this plant and it will cater to the needs of Automobiles and die casting industries situated in Europe & Asia. This plant will help the company to change its sales mix by increasing the contribution from the aluminum business.
About the Company
Gravita India Limited with a presence in over 70 countries, is a leading global recycling company with 12 eco-conscious state-of-the-art manufacturing facilities worldwide, collectively capable of processing 3,08,659 MTPA.
Gravita India Limited is engaged in operations of specialized verticals like Lead Recycling(flagship), Aluminum recycling, Plastic recycling, and Turnkey projects with a healthy order book of 60000 MT+
It has strong expertise in the recycling of used batteries, cable scrap, Plastic scrap, Lead scrap, Aluminum scrap, and others. It has also begun New recycling Verticals i.e., Lithium, Steel, Rubber & Paper.
Customer Base
It has a good clientele base with well-known players like Amara Raja, Tata Batteries, Luminous, TVS, Hitachi, Polycab, Panasonic, Samvardhana Motherson, Philips, Ducab, Sterlite Power, Glencore, and many more.
Product Portfolio and Business Model
Its Customized and Value-added product portfolio consists of Customized Lead Alloys, Lead Sheets, Lead Bricks, Red Lead, Lead Oxide, Customized Aluminium Alloys, Plastic Granules, Pet Flakes, and many more.
Its Business Model consists of Last Mile Procurement, Segregation /Sorting / Quality Inspection, Eco-friendly Processing followed by Value Added Products, Quality Check & Delivery, and Customer Satisfaction / R&D.
Financials & Ratios
Its revenue from operations grew by 14 percent from Rs. 850.31 Crores in Q2FY24 to Rs. 967.75 Crores in Q2FY25, accompanied by profits of Rs. 57.86 Crores to Rs. 72 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 28.96 percent, and a return on capital employed (ROCE) of 23.95 percent. It has reported a debt-to-equity ratio of 0.6.
Written by: Bharath K.S
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