The shares of the world’s second-largest steel Drum Closures rose around 4.5 percent to an intraday high of ₹1,786.35 per share on wednesday after the company commenced manufacturing of Aluminium Fabrication at its new facility in Maharashtra.
Technocraft Industries (India) Ltd is a Small cap company with a market capitalization of ₹4,040 crore. At 11:30 a.m, the company shares were trading at ₹1,758.35 a share, an increase of 2.78 percent from the previous closing price on the stock exchange.
As per the company’s official exchange filings, it has been reported that the company’s wholly-owned subsidiary Technocraft Formwork Private Limited has successfully established a new unit within its scaffoldings division in Aurangabad, Maharashtra. This unit specializes in the manufacturing of Aluminium Fabrication, boasting an impressive installed capacity of 600,000 square meters. Production at this facility commenced on March 27, 2024.
Technocraft Industries was incorporated in 1992. It has a presence in five main business industries viz., Drum Closures, Scaffolding systems, Cotton Yarn, Fabric, Garments, and Engineering Services. The company has manufacturing facilities in India and China.
Year over year, companies’ revenues saw a significant 5 percent increase, rising from ₹489 crores in Q3FY23 to ₹513 crores in Q3FY24. However, during the same period, there was a notable decline in net profit, dropping by 30 percent from ₹87 crores to ₹61 crores.
Scaffolding and Formwork contribute 38 percent of the company’s revenue, with a substantial portion, 75-80 percent, coming from overseas markets. Yarn and fabric business contribute 31 percent, while Drum Closures business accounts for the remaining 31 percent.
In terms of geographical revenue mix, the majority, 63 percent, comes from exports, with the remaining 37 percent generated domestically.
The company’s manufacturing facilities have installed capacities of 40,000 MT and 25,000 MT in India and China (recently shifted to India), respectively, for Scaffolding. The Yarn division has a capacity of 87,000 spindles, and the Drum closures segment has an annual capacity of 55 million sets in India and 15 million sets in China.
Technocraft Industries shares have experienced a 52 percent gain in the last 12 months but have faced a 12 percent decline in the last six months.
Written by Omkar Chitnis
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