The shares of the global leader in metal flow engineering gained up to 6.2 percent after the company inaugurated a new Mould Flux manufacturing plant with an additional investment outlay of Rs 1,000 crore.
With a market capitalization of Rs 7,295.93 crore, the shares of Vesuvius India Ltd were trading at Rs 3,584.30 per share, increasing around 3.29 percent as compared to the previous closing of Rs 3,473.80 apiece.
According to the company filing, Vesuvius India Ltd has inaugurated a new Mould Flux manufacturing plant t in Visakhapatnam with an additional investment outlay of Rs 1,000 crore. The plant is designed to meet the increasing demand for flux, a vital component in the continuous casting process at steel plants.
Mr Patrick Andre, Chief Executive of London headquartered Vesuvius group stated “We are delighted to inaugurate our new state-of-the-art Flux manufacturing facility, a testament to our relentless pursuit of innovation and our commitment to meeting the needs of our customers and the market. We envisage surpassing our earlier stated investment plans of Rs 500 crore to reach close to Rs 1,000 crore outlay over the next few years.”
Looking into Vesuvius India Ltd’s financials, the revenue increased by 19 percent, from Rs 348 crore in Q3 FY23 to Rs 417 crore in Q3 FY24. During the same period, net profit increased by 103 percent, from Rs 28 crore to Rs 57 crore.
Vesuvius has made considerable investments in India, extending existing production units and establishing three new greenfield operations, resulting in an extra capacity of 2,50,000 tons annually. The flux production factory is the first of three new units scheduled to open in 2024.
The stock has delivered returns of 5.20 percent in the last six months and a multi-bagger return of 114.82 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.14 lakh in a year.
Vesuvius India Ltd is primarily involved in the production and distribution of refractory commodities. It also offers services related to refractory items. It has operations in India and serves both domestic and international markets.
Written by:- Abhishek Singh
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