Pune-based engineering company Praj Industries has improved its market share in domestic ethanol plants for the September quarter, said Shishir Joshipura, CEO & MD at Praj Industries.
"We have actually improved our market share from 60 percent on the upward side of 66 percent. So we have actually seen a positive movement on the domestic side," he told CNBC-TV18.
He credits the phenomenon of energy transition for this kind of growth, despite headwinds. "Although there was this lull because of the holiday period and the war that continues to rage in Europe, I think the clear understanding is that people are now beginning to very seriously evaluate actions that need to be taken on ground for driving with the whole phenomenon of energy transition, and that's where we believe that there'll be even more exciting opportunity as we move forward."
During FY22-25, the government expects ethanol demand to grow by over 30 per cent CAGR to reach 10.2 billion litres to achieve 20 percent blending from 10 percent currently.
The Pune-based company on Tuesday reported a jump of 44 percent in net profit for the July-September quarter at Rs 48.1 crore, against a profit of Rs 33.3 crore in the corresponding period in the previous year.
The management told CNBC-TV18 that the company sees no softness in order inflow. "We are not seeing any softness. It's just the nature of the business is such and there's deadline of 30 September so we have pretty strong discipline rule for that. So, there is no slowing down, we are not anticipating any deduction in ordering speed."
Joshipura reiterated that the company expects the export business bookings to pick up at a significantly in the second half.
According to the company, they remain optimistic with a strong order book as several policy measures, such as flex-fuel vehicles, stationary diesel engine conversion to ethanol, diesel blending programs, and exports of ethanol under certain circumstances, are likely to further boost the demand for ethanol. These well for sustained demand for ethanol beyond the calendar year 2025 (CY25).
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