Heranba Industries initiates commercial production at its Vapi unit
This new unit which is located at Vapi, shall have a production capacity of 1200 MTPA and is expected to generate annual revenue of Rs 100 crore.
Heranba Industries Limited, an Indian agrochemical company that manufactures synthetic pyrethroids and its intermediates, announced the beginning of commercial production at its new Unit –IV.
Located at Vapi, this new unit shall have a production capacity of 1200 MTPA. It will not require any capital expenditure in near future and is expected to generate annual revenue of Rs 100 crore. This development is aligned with Heranba’s commitment and promises towards fostering sustainable growth while also creating job opportunities in the region.
Speaking about this development, the company’s managing director, R K Shetty said that the commencement of production shall result in additional revenue generation for the company. And that it is a recognition of the company’s established track record, healthy accruals and resiliency of the business model. He further said that in order to achieve significant margin expansion, the company is dedicated towards accelerating revenue growth and enhancing its productivity.
Coming to financial performance, in Q2FY22, Heranba’s net revenue grew by 1.22% YoY to Rs 353.44 crore. The PBIDT (ex OI) went up 9.59% YoY to Rs 61.18 crore. The PBIDT (ex OI) margin expanded by 132 bps to 17.31%. This growth came on the back of reduced expenses. The company’s net profit went up by 20.9% YoY to Rs 45.52 crore, whereas its corresponding margin expanded by 211 bps to 12.91%.
Going forward, the company aims to venture into the highly regulated markets of the USA and Europe, strengthen its R&D facility, and enhance production capacities as well as formulation and technicals in the international markets.
At 3.25 pm, the share price of Heranba Industries Limited was trading at Rs 655.55, which was a decrease of 2.27% from the previous week’s closing price of Rs 670.8 on BSE.
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