Energy & Environment

Vikas Ecotech records buoyant sales with 72% increase in Revenues and 962% increase in profits in Q1 FY17

• Major export and domestic client wins resulted in improved revenues • Operation efficiency and savings in raw material costs helped in margin improvements
( PR4US.com | Press Release | 2016-08-11 18:26:40 )
Aug 11, 2016, Mumbai:

1. Financials: Bottom-line growth sharper than revenue growth
(INR in Crores)
Particulars Q1 17 Q1 16
Net Revenues 101 58.6
EBIDTA 17.83 4.93
PAT 9.13 0.86
EPS 0.36 0.03

The company recorded a net revenue of INR 101 crores as compared to INR 59 crores in the corresponding period of the previous year, an increase of 72%. Profit before Interest, Depreciation and Tax was at INR 18 crores, higher by 262% from INR 5 crores in the same period of the previous year. Profit after Tax and EPS rose nearly 10 times to INR 9.13 crores and INR 0.36 as compared to INR 0.86 crores and INR 0.03 respectively recorded in the same period of the previous year.

Exports increased to INR 55 crores from INR 19 crores, a substantial 188% growth.

The company achieved higher turnover and at the same time improved profits – new client wins along with better realisations helped with revenues while cost and operational efficiency contributed to the bottom line.

2. Management comment: Vikas Garg, Managing Director
“We have posted a good performance this quarter with some major initial customer successes in Latin America, Europe and Middle East. Our products are receiving good response from global leaders due to high standards of quality and efficiency. Our growth strategy continues to be driven on the 3 pillars - innovation & R&D driven new product development, capacity enhancement to meet market demand and new customer wins across the globe.”

3. New Clients Wins: Increasing Customer Base in India and Exports
During the quarter the company won new clients both in India and through the exports division. These client wins will aid revenue maximization in the future.

Vikas Eco have been chosen and has started trial orders for one of Mexico’s leading petrochemical giant for Organo Tin Stabilizers. This will translate into commercial orders from Q3 of this financial year. Our products are meeting international standards of quality and we see several interests from the LatAm (Latin America) market.

Rest of the client additions were from the domestic sector (India). They are from the PVC pipes and molding industry, footwear sole manufacturers, automobiles and packaging sectors. The orders are for our specialty additives (primarily Lead-free stabilizers) and plastic compound applications.

4. Business Developments: Continuous Capacity & Process Improvements

During the quarter the company commenced the construction of its state of the art manufacturing plant and Innovation (R&D) Center at Dahej, Gujarat. This is the 3rd plant of Vikas Ecotech With a capex of Rs. 30 crores, the plant will produce 6,000 MT of Organotin stabilisers (Methyl Tin Mercaptide or MTM) and 5,000 MT of special polymer compounds annually.

The regulatory certification process for our products in key international markets like USA and other developed countries are at various advanced stages. Once we receive the go ahead from the regulators of each country or region, it will help us enter advanced economies that have a burgeoning demand for ‘eco-friendly’ specialty chemicals.

5. Industry Trends: Voluntary shift to lead free pipes by PVC manufacturers

Businesses continue to focus on technology and solutions. The Indian PVC industry is voluntarily moving towards the concept of ‘eco-friendly pipes & plumbing’ – replacing lead based chemical applications with lead free chemical applications as raw material inputs. We see demand for our lead free replacements growing continuously.

For editorial queries, please contact -

Ms. Kanchan Pratap, PR Consultant Mr. Rajendra Agarwal
E- kanchan.pratap@gmail.com E - rajendra.agarwal@vikasecotech.com
M - + 91 9004664011 M - +91 97111 79718


Press Information

Vikas Ecotech
Vikas House New Delhi

91 97111 79718

Contact person
Mr. Rajendra Agarwal
Manager
http://www.vikasecotech.com

eMail

Published by

kanchan Pratap

9004664011
http://www.vikasecotech.com

Contact kanchan Pratap


 

 

 

 

 

 

Contact Vikas Ecotech


 

 

 

 

 

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact PR4US. We will not be able to assist you. PR4US disclaims the content included in this release.
Preparing for PR: Five Hot Tips for Startups
PR Fundamentals for Startups - MaRS Best Practices
Public Relations 101
Public Relations Strategy in Our World Today!
Introduction to Public Relations
Trends in Communicating
How to Do Marketing/PR on a Budget - CoInvent Startup Summit 2014 New York
Monika Dixon Shares PR Tips