In Wednesday’s trading session, shares of India Glycols Limited, associated with the ethanol sector, experienced a notable uptick of 3.30%. This surge followed the company’s announcement regarding the expansion of its distillery capacity located in Kashipur, Uttarakhand.
With a market capitalization of Rs 2,324.28 crores, India Glycols Limited commenced Wednesday’s trading at Rs 779.95 and concluded at Rs 750.70. The stock reached an intra-day high of Rs 779.95, marking a gain of approximately 3.30% compared to the previous closing price of Rs 755.15 per share.
The company communicated the capacity enhancement of its grain-based distillery in Kashipur through a regulatory filing with the Bombay Stock Exchange (BSE). The distillery’s capacity has been augmented by an additional 100 Kilo Litre Per Day (KLPD), bringing the total capacity to 400 KLPD, and it is now fully commissioned.
Despite experiencing a reduction in basic business parameters such as operating revenues and after-tax profits in recent financial quarters, India Glycols Limited remains a key player in the chemical manufacturing and marketing sector. Operating revenues saw a slight decline from Rs 1,893.64 crores in Q1FY23-24 to Rs 1,869.88 crores in Q2FY23-24, while after-tax profits decreased from Rs 45.12 crores to Rs 37.14 crores over the same timeframe.
This trend impacted the company’s profitability ratios, with the return on equity (RoE) falling from 22.29% in FY21-22 to 7.64% in FY22-23, and the return on capital employed (RoCE) dropping from 17.28% to 9.21% during the same period.
India Glycols Limited specializes in the manufacturing and marketing of chemicals, offering products such as specialty chemicals, ethyl alcohol, natural gum, and industrial gases. The demand for their diverse product range comes from various industries, including pharmaceuticals, nutraceuticals, food, textiles, automobiles, and potable segments.
