Praj posts impressive Q2 results Half Year Profits up 150%

The Board of Directors of Praj, the global Ethanol & Brewery Technology major, took on record the unaudited financial results for the Q2 of FY 2006-07.

Corresponding Half Yearly Review (HY 2006-07/HY 2005-06):
Total Income higher by 94% to Rs. 229.97 crores(Rs.118.71 crores)
Growth in PBT and PAT of 150% with PBT at Rs. 33.59 crores(Rs.13.48 crores) and PAT at Rs. 25.89 crores (Rs.10.26 crores)

“We are seeing a major acceleration in the performance, as envisaged. The half-year turnover is almost equivalent to last whole year’s level. Going by the orders on hand and in the pipeline, we shall aim to exceed annual targeted sales of USD one hundred million (Rs. 450 crores),” said Pramod Chaudhari, Chairman, Praj. Pending orders, as at end-September’06 are in the region of Rs. 600 crores.

Keeping in mind current and expected performance levels, the Board of Directors have also announced an interim dividend of 45% (Rs. 0.90 per share).
The consolidation efforts undertaken by the Company in the previous years are bearing fruit in this year. The addition of two manufacturing shops equipped with automated machinery, and increased manpower base has enabled Praj to upscale its production levels. The results are already visible in this half year, wherein the Company has doubled its turnover on the back of a strong base. Praj continues to add to its resources.

Pramod Chaudhari announced finalization of plans to set up yet another manufacturing shop in Kandla SEZ which will further augment the capacity, especially for export orders. This shop is expected to roll out equipment by the end of this fiscal.
Out of total grant of over 17 lakh shares under ESOP, first tranche of one third number of options have been opened for exercise.
Market Scenario

International:
Globally, Praj has been making rapid headways in the international markets with significant order intake from USA. USA, which announced the ethanol blending policy, is committed to increasing capacity, despite the volatility in crude oil prices. So far, Praj has been contracted for more than ten orders from USA itself, since its entry six months ago. With a capacity of 4.4. bln gallons, USA is still a long way from the mandated 7 bln gallons. Experts opinion suggests that demand will push the capacities further to around 10 bln gallons.
The activity in Europe has also been very heartening. With progress of British Sugar order well under way and two more orders from Eastern Europe, Praj is talking to a number of producers across Europe for their requirement of fuel ethanol technology.

India: Inspite of a delay in the fuel ethanol policy in India, Praj has seen a resurgence in demand for alcohol plants. Praj has already contracted several orders for installation of alcohol Plants.

Brewery Plants: In Brewery Plants segment too, Praj has been making rapid headways. Praj has contracted orders from leading breweries in India including UB and SAB Miller. With a dedicated workshop for brewery equipment, execution of these projects are well under way.
Vinati Moghe, vinatimoghe@praj.net , mobile: 9822430906