Ethanol stock jumps 7% after company’s net profit increased by 30% QoQ
Shares of Praj Industries Limited (PIL) surged 7.2% to Rs. 538 on BSE after a 30.5% QoQ rise in net profit. At 12:57 p.m., shares traded at Rs. 527.3, up 5.11%. Q4 FY24 revenue grew 23% QoQ to Rs. 1,018.6 crore, EBITDA rose 34.1% QoQ to Rs. 130.7 crore, and EPS increased 30.5% QoQ to Rs. 5. The international order book rose 62% YoY, while order intake dropped 12.3% YoY. The board recommended a Rs. 6 dividend.
Share price of a company engaged in the business of process and project engineering moved up by 7.2 percent on BSE to hit an intraday high at Rs. 538 in the trading session of Friday, after reporting a rise in the net profit by 30.5 percent QoQ.
With a market capitalisation of Rs. 9,692.5 crore, at 12:57 p.m., the shares of Praj Industries Limited (PIL) were trading in the green at Rs. 527.3, up by 5.11 percent, compared to its previous closing price of Rs. 501.65.
The fluctuations in the share prices were observed after the company announced the financial results for FY24, through the recent filings with the stock exchanges on Thursday post-market hours.
The revenue from operations stood at Rs. 1,018.6 crore in Q4 FY23-24, indicating a growth of nearly 23 percent QoQ from Rs. 828.62 crore in Q3 FY23-24, and on a year-on-year basis, it increased by 1.45 percent from Rs. 1,004 crore in Q4 FY22-23.
On a quarter-on-quarter basis, the company’s consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA stood at Rs. 130.7 crore in Q4 FY23-24, as against Rs. 97.5 crore in Q3 FY23-24, registering a growth of 34.1 percent QoQ.
The Diluted Earnings Per Share (EPS) increased by 30.5 percent QoQ from Rs. 3.83 in Q3 FY23-24 to Rs. 5 in Q4 FY23-24.
The company’s international order book increased by 62 percent on a YoY basis and is also chosen to build state-of-the-art modules for one of the largest Blue Hydrogen projects in Europe.
PIL’s order intake reduced from Rs. 1,038 crore in Q4 FY22-23 to Rs. 924 crore in Q4 FY23-24, indicating a decline of 12.3 percent YoY, while the order backlog grew by nearly 13 percent YoY from Rs. 3,414 crore to Rs. 3,855 crore, during the same period.
In FY24, the company commissioned its first Grain-to-ethanol plant in Brazil, and has already signed a contract with BE8 for the next grain-to-ethanol plant.
“Praj is on a path to transform its business with additional focus on emerging segments of CBG, SAF and ETCA in near to midterm future while expanding the share of international business in the overall pie,” the company’s CEO & Managing Director commented.
Further, the Board of the company has recommended a final dividend of Rs. 6 per equity share of the face value of Rs. 2 each for FY23-24, subject to the approval of the shareholders.
The stock has delivered positive returns of nearly 34.4 percent in the last one year, but has given negative returns of around 17.7 percent in six months.
Incorporated in 1985, Praj Industries Limited (PIL) provides a wide range of sustainable solutions for bioenergy, high-purity water, critical process equipment, breweries & beverages, and industrial wastewater treatment.
The company offers novel technologies, products, and services for all the requirements related to an ethanol plant.
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