Praj Industries, part of the engineering and construction products sector, reported a jump of 44 percent in net profit for the July-September quarter at Rs 48.1 crore as compared to registering a profit of Rs 33.3 crore for the corresponding period a year ago.
The revenue for the quarter stood at Rs 876.6 crore seeing a growth of 64.6 percent from Rs 532.4 crore in the quarter ended September 2021.
The Earnings before interest, taxes, depreciation and amortization (EBIDTA) — the measure of core corporate profitability — grew 46.6 percent for the quarter and stood at Rs 67.6 crore. But the margins declined and stood at 7.7 percent for the quarter as compared to being at 8.7 percent for the corresponding period a year ago.
The stock saw a spike when the Q2 result was released to the exchangesPraj specializes in process and project engineering. The company serves both domestic and international markets. Additionally, the company offers design and engineering services. Bio-energy, engineering, and HiPurity are the main segments of the company.
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 per cent blending from 10 per cent currently.
Also read: As PSU banks rally, top fund manager describes what a 'goldmine' in the space should have
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).
The stock has been gaining recently, in one month it has gained over 13 percent on the BSE. On October 12, it hit a fresh record high of Rs 461.
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