Jiya Eco Products climbs 15% as company targets revenue of Rs 235 cr in FY20
The company plans to expand to neighbouring states of Maharashtra, Madhya Pradesh and Rajasthan which would further boost its topline.
August 26, 2019 / 03:07 PM IST
Shares of bio fuel maker Jiya Eco Products rallied more than 15 percent intraday on August 26 after the company said it expects to increase its topline by 10 percent YoY to Rs 235 crore in the current financial year.
"The company plans to achieve sales volume of 2.55 lakh tones in FY20. A new pellet manufacturing facility at Gandhidham, Gujarat, with a total rated capacity of 54,400 MT per annum and spread over 3 acres will commence operations soon. The new facility has been set up with an investment outlay of Rs 6.30 crore and will initially have a capacity utilization of 35 percent," the briquettes and pellets manufacturer said in its release.
The company plans to expand to neighbouring states of Maharashtra, Madhya Pradesh and Rajasthan that would further boost its topline, it said, adding it also plans to embark on a pan India expansion through the franchise route and is actively scouting for export opportunities.
Company's June quarter profit grew 21 percent year-on-year to Rs 7.46 crore and revenue increased by 10 percent to Rs 52.58 crore compared to year-ago.
"We remain bullish about the future of biofuels as a cost-efficient, sustainable and cheaper alternative. Keeping in line with this bright outlook, we have outlined exciting expansion plans including a new manufacturing facility, expanding to newer domestic markets and export opportunities. These initiatives should boost the company’s topline and bottomline and help us maintain our position as a leader in the biofuels sector," Bhavesh Kakadiya, Managing Director said.
Jiya Eco Products manufactures biofuel briquettes and pellets from agricultural and forest waste which are used as substitutes for commonly used fossil fuels like coal, charcoal, firewood, diesel, LPG and CNG.
The stock was quoting at Rs 50.75, up Rs 6.25, or 14.04 percent on the BSE at 1410 hours IST.