The Government of India in the recent past has given a lot of impetus on ethanol blending programme and accordingly the Company plans to increase its distillery capacity to meet the increasing ethanol demand.
The overall cane crushing capacity is planned to be increased approximately by 5000 TCD and distillery production is planned to be increased around 15 Crore Litres from currently 8 Crore Litres over a period of next 2-3 years.
The capital expenditure for the abovementioned expansion is estimated to be Rs412cr which will be financed partly by way of internal accruals and partly through debt.
The company’s net profit was up by 10.81% to Rs55.55cr in the quarter ended September 2020 as against Rs50.13cr during the previous quarter ended September 2019. The sales also climbed by 52.54% to Rs719.53cr in the quarter ended September 2020 as against Rs471.71cr during the previous quarter ended September 2019.
The stock is currently trading at Rs132.40, down by Rs9.1 or 6.43% from its previous closing of Rs141.50 on the BSE.
The scrip opened at Rs139.95 and has touched a high and low of Rs139.95 and Rs131.90 respectively.