In the corresponding quarter of the previous fiscal, Gravita India posted a net profit of Rs 57 crore, the company said in a regulatory filing. The company’s operating income rose 11% to Rs 927.4 crore as against Rs 836.2 crore in the corresponding period of the previous fiscal year.
At the operating level, EBITDA fell 13% to Rs 63.4 crore in the second quarter of this fiscal, as against Rs 72.8 crore in the corresponding period of the previous fiscal.
Also read: Tata Consumer Products Second Quarter Results | Net Profit Steady at Rs 359 Crore, Beats Estimates
EBITDA margin stood at 6.8% in the reported quarter compared to 8.7% in the corresponding period of the previous fiscal year. EBITDA is earnings before interest, taxes, depreciation and amortization.
Last month, Gravita India announced that its delisted subsidiary, Gravita Netherlands BV, signed a Memorandum of Understanding (MOU) to acquire a waste tire recycling plant in Romania with a capacity of approximately 17,000 metric tonnes per annum (MTPA). This will be Gravita’s first recycling facility in Europe.
This acquisition will be carried out through the formation of an independent special purpose vehicle (SPV) in Romania, in which Gravita Netherlands BV will have 80% of the share capital with management control in said SPV, and the remaining capital will be held by others partners based in Romania, the company said in a statement.
Also read: Gravita India to reduce stake in core business, expand into new recycling areas
Further, the total investment in this transaction will be approximately Rs 40 crore and the company will invest approximately Rs 32 crore in its contribution, subject to in-depth financial, environmental and legal due diligence.
GNBV also aims to expand its recycling business operations across the European market, seizing new market opportunities and establishing strategic partnerships to drive growth. This acquisition will enhance our presence, increase our customer base and strengthen our competitive advantage in the European market.
Shares of Gravita India Ltd ended at ₹2,427.00, down ₹87.45, or 3.48%, on the BSE.
First published: October 21, 2024 16:08 IS
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