Ganesha Ecosphere soared more than 6 percent intraday on September 4 after the company's wholly-owned subsidiary bagged a supply order for Coca-Cola India Pvt Ltd.
The company's arm, Ganesha Ecopet, will supply rPET resin (packaging material) to Coca-Cola's preform converters in India.
On September 4, shares of Ganesha Ecosphere settled 4.31 percent higher from the previous close at Rs 1,097.50 on the NSE. Trading volumes rose sharply as three lakh shares changed hands on the exchanges, well above the one-month daily average of one lakh shares.
In August, Ganesha Ecopet bagged another order from Moon Beverages, an authorised bottler of Coca-Cola company for the supply of recycle resin -PET chips, which are used in food-grade packaging.
The company, involved in the textile processing business, recorded a 21 percent on-year decline in its revenue from operations in the April-June quarter, which dragged the bottomline 42.7 percent down year on year.
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The EBITDA margin also remained under pressure, contracting 7.41 percent in the quarter from 9.36 percent in the year-ago period.
The company attributed reduced export demand to a slowdown in Europe and the US in May and June and pricing pressure on domestic supplies due to cheap Chinese dumping. A fall in cotton prices as well as price softening in polyester feedstock were cited as factors behind the weak financial performance.
However, the management did highlight seeing green shoots of recovery in the recycled polyester staple fibre market which started to improve, with sales pressure easing and new orders flowing in due to empty pipelines.
The company also expects domestic demand to pick up with the arrival of the festival season and accordingly hopes for a better performance in the July-October quarter.
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