Gravitas’s overall production has increased by approximately 2pc in June quarter from the previous year despite the COVID-19 pandemic. The recycler posted a net profit 103pc higher from the prior year on a significant increase in sales volumes of overseas units, according to the company’s earnings release. In Q1 (April-June), the company’s lead products output increased by 7pc from the prior year.
In Q1, lead sales volume was 16,221mt; aluminium 973mt and plastics 2,493mt. Lead segment sales grew by 10pc from the prior year quarter, while aluminium segment sales slipped by 48pc from Q1 2019.
Gravita is optimizing its overseas manufacturing facilities and is in the process of improving its scrap collection network in India. The company seeks to reduce logistics cost by lowering scraps imports and reducing working capital cycle. The company is focusing on improving its product mix to achieve better margins.
The company’s Q1 revenues fell by 2pc to Rs258.45 crore (Rs2.58mn or $34.4mn) from the prior year. Operating profit dipped by 15pc to Rs126.4mn, down 15pc from the year prior quarter. Net profit jumped a whopping 103pc to Rs38.8mn in Q1 from the prior year. The increase in profit margins is on the back of a significant increase in sales volumes from its overseas manufacturing facilities where Gravita achieves better margins and lower working capital cycle.