Stock surges 8% after entering into a joint venture with IOCL for production of Biofuels

Shares of Praj Industries Ltd. surged 8 % on Friday to reach an intraday high of ₹ 386.90  apiece from the previous close price of  ₹ 357.30. The company’s recent release of strong Q4 FY 22-23 results caused the stock price to jump today. 

The company reported a net profit of Rs 88 crore in Q4 FY23, registering a rise of 54% compared to Rs 57 crore in the corresponding quarter last year.

At 15:20 am, the stock was trading at  ₹ 374.65 on the BSE, up 4.97 percent from its previous close.

The board of directors of the company proposed a final dividend of ₹4.50 per equity share at 225 percent of the face value of ₹2 per equity share, for the financial year 2023.

Praj Industries Ltd. is a leading biofuel technology company. It is engaged in alcohol production and wastewater treatment systems. It provides a number of processes and systems for ethanol and biodiesel production and has a presence in 60 countries. 

The company has been approved to form a joint venture with the Indian Oil Corporation (IOCL) for the production of a variety of biofuels.

In addition, the company has partnered with AirAsia to fly the first commercial aircraft in India using a sustainable aviation fuel (SAF) blend.

Having a quick walkthrough of the financials reported by the company, the operating revenue increased from ₹909 crores in Q3 to ₹1,003 crores in Q4. Similarly, the net profits of the company during the same period, increased by 42 percent, from ₹62 crore to ₹ 88 crore. 

On a YoY comparison of the metrics, the revenues significantly increased by 21 percent from ₹ 829 crores during FY 21-22 to ₹1,003 crores in FY 22-23. Within the same timeframe mentioned, the PAT has moved, from ₹ 57 crores to 88 crores. 

According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 32.82 percent stake, and foreign institutional investors (FIIs) hold a 17.83 percent stake in the company for FY 22-23.

Written by Omkar C

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