Gravita India Q2 Results | Net profit rises 26% to ₹72 crore, revenue up 11% to ₹927 crore

Recycling player Gravita India Ltd on Monday (October 21) reported a 26.3% year-on-year (YoY) increase in net profit at ₹72 crore for the second quarter that ended September 30, 2024.

In the corresponding quarter of the previous fiscal, Gravita India posted a net profit of ₹57 crore, the company said in a regulatory filing. The company’s revenue from operations increased 11% to ₹927.4 crore as against ₹836.2 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA dipped 13% to ₹63.4 crore in the second quarter of this fiscal over ₹72.8 crore in the corresponding period in the previous fiscal.

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EBITDA margin stood at 6.8% in the reporting quarter as compared to 8.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Last month, Gravita India announced that its step-down subsidiary, Gravita Netherlands BV, has executed a Memorandum of Understanding (MOU) to acquire a waste tyre recycling plant in Romania with a capacity of approximately 17,000 metric tonnes per annum (MTPA). This will be Gravita’s first recycling facility in Europe.

This acquisition will be made by forming a separate special purpose vehicle (SPV) in Romania, in which Gravita Netherlands BV will be holding 80% of the equity with management control in the said SPV, and the remaining equity will be held by other partners based in Romania, the company said in a filing.

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Further, the total investment in this transaction will be approximately ₹40 crore, and the company will be investing approximately ₹32 crore towards its contribution subject to in-depth financial, environmental and legal due diligence.

GNBV also aims to expand its recycling business operations across the European market, leveraging new market opportunities and establishing strategic partnerships to drive growth. This acquisition will enhance our presence, increase our customer base, and strengthen our competitive edge in the European market.

Shares of Gravita India Ltd ended at ₹2,427.00, down by ₹87.45, or 3.48%, on the BSE.