Latest news with #Capex
Business Standard
10 hours ago
- Business
- Business Standard
Aarti Drugs rises after Q1 PAT jumps 62% YoY to Rs 54 cr
Aarti Drugs jumped 4.22% to Rs 544.70 after the company's consolidated net profit climbed 62.2% to Rs 53.91 crore on 6.3% increase in revenue from operations to Rs 590.51 crore in Q1 FY26 compared with Q1 FY25. Profit before tax (PBT) rose 16.2% YoY to Rs 51.11 crore in Q1 June 2025. EBITDA jumped 12% to Rs 74.4 crore in Q1 FY26 compared with Rs 66.1 crore in Q1 FY25. EBITDA margin expanded by 70 bps to 12.6% in Q1 FY26 from 11.9% posted in Q1 FY25. On segmental front, the revenue from API stood at Rs 458.2 crore (up 4% YoY), formulations was at Rs 80.3 crore (up 14% YoY), specialty & chemicals stood at Rs 33.1 crore (up 24% YoY) and intermediaries & others stood at Rs 18.9 crore (up 22% YoY) during the period under review. Adhish Patil, CFO & COO, of Aarti Drugs, said, During Q1FY26 the Company incurred Capex of ~Rs. 48.5 crores mainly towards capacity expansion, backward integration and finished formulation R&D. For FY26, we expect Capex at around Rs 150-200 crore. The company has started trial productions at its new greenfield manufacturing facility in Sayakha, Gujarat. This plant has been set up mainly for backward integration into anti-diabetic products and their intermediates, and is expected to largely serve internal requirements. This backward integration is a key strategic step that should help improve profit margins over time and reduce the risk of input costs volatility. This project will support internal requirements for our anti-diabetic product and choline chloride, contributing to backward integration, margin improvement, and supply chain de-risking. The new greenfield Salicylic Acid plant at Tarapur is progressing well and is expected to begin contributing to the companys financials from the third quarter onwards. The company is now focused on a calibrated ramp-up of operations, with a clear roadmap to scale production to over 800 tonnes per month and further expand the installed capacity to approximately 1,600 tonnes per month by the end of FY26. Recently, the USA government has announced high tariffs on pharmaceutical products and APIs imported from countries like China. This move is aimed at reducing their dependence on Chinese suppliers. This has the potential to reshape global supply chains. While this may disrupt sourcing patterns for several players, it also opens up new opportunities for Indian API manufacturers. The company, with a recently USFDA approved API facility and established manufacturing capabilities, is strategically positioned to meet this demand shift. The commissioning of new capacity at Sayakha and Tarapur supports this readiness and enhances the Company's ability to serve regulated export markets. Our formulation subsidiary has also got USFDA approval for its Oncology facility & UKMHRA approval for our OSD facility; alongside we are on a path to develop and register new oncology dossiers across the globe which will drive the regulated market growth from FY27 onwards. Aarti Drugs was established in the year 1984 and forms part of $6 Billion Aarti Group of Industries. The company is engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharma intermediates, speciality chemicals and produces formulations with its wholly-owned subsidiary-Pinnacle Life Science.
New Indian Express
3 days ago
- Business
- New Indian Express
BSES hits 10,000 rooftop solar mark, saves Delhiites Rs 160 crore a year
NEW DELHI: In a major green milestone, BSEShas energised over 10,000 rooftop solar net metering connections, with a combined sanctioned load of approximately 220 MWp across South, West, East, and Central Delhi. This shift is not just helping curb pollution, but also powering consumer savings of nearly Rs 160 crore annually. The initiative has seen an overwhelming response, particularly from the residential sector—around 6,900 homes have adopted solar, followed by commercial (1,771), educational (981), industrial (163), and other establishments (236). While the domestic segment has the most connections, the commercial sector accounts for the highest energised load at 81 MWp. This solar momentum has been driven by the PM Surya Ghar Muft Bijli Yojana and Delhi's Solar Policy, which offer up to Rs 1.08 lakh in subsidies, low-interest loans, and attractive generation-based incentives. Consumers can choose between the Capex model, where they own the system, and the Hybrid RESCO model, which involves zero upfront cost. A typical 10 kW domestic rooftop system can help save up to Rs 86,400 annually. Consumers can also earn by feeding surplus electricity back into the grid. Over 125 residential societies have adopted this model, contributing more than 5.5 MWp of clean energy. BSES' Solar City Initiative is driving awareness, quality compliance, and long-term sustainability. Rooftop systems generate 100–120 units per kW each month, with cost recovery achievable in 3–4 years. Other benefits include reducing total billed consumption, potentially qualifying consumers for Delhi Government's power subsidy. Currently, the RESCO to Capex ratio among BSES consumers is about 10% to 90%, reflecting a strong preference for ownership and long-term gains.
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Business Standard
3 days ago
- Automotive
- Business Standard
Tyre industry to grow 7-8% in FY26, driven by replacement demand: Crisil
India's Rs 1 trillion tyre industry is expected to post a steady revenue growth of 7–8 per cent in FY26, driven largely by robust replacement demand, which accounts for nearly 50 per cent of the sector's annual sales, according to Crisil Ratings. Rising premiumisation trends are also expected to aid realisations marginally, even as original equipment manufacturer (OEM) offtake remains subdued and global trade headwinds cloud the outlook. Crisil forecasts volume growth at 5–6 per cent, similar to the last fiscal. The replacement segment is expected to grow 6–7 per cent on the back of a large vehicle base, rural recovery, and strong freight movement. OEM volumes, which contribute roughly 25 per cent, are projected to rise 3–4 per cent, buoyed by steady sales in two-wheelers and tractors, with modest gains from passenger and commercial vehicles. Exports, also contributing 25 per cent of volumes, are likely to grow 4–5 per cent, supported by demand from Europe, Africa, and Latin America. Tyre maker Ceat sees signs of optimism. 'We expect raw material prices to decline by 1–2 per cent in Q2 over Q1, largely due to softening crude oil and international rubber prices,' said Kumar Subbiah, CFO and Executive Director of Ceat. 'If demand stays stable, this could positively impact our margins. The trend looks encouraging, and we are hopeful of margin recovery.' Crisil also pointed out that operating profitability is expected to remain stable at 13–13.5 per cent, supported by steady input costs and high capacity utilisation. Input cost pressure has been easing, offering some relief to manufacturers. Natural rubber prices had surged 8–10 per cent in FY25, alongside increases in crude-linked inputs like synthetic rubber and carbon black, eroding margins by nearly 300 basis points. However, the industry faces external risks. The US, which made up 17 per cent of India's tyre export volume last fiscal (and 4–5 per cent of total industry volume), has imposed reciprocal tariffs on Indian goods, potentially hurting competitiveness. Moreover, steep US tariffs on Chinese goods could push Chinese producers to dump excess inventory in price-sensitive markets like India. Although India has a 17.57 per cent anti-dumping duty on large truck and bus radials from China, other segments remain vulnerable. 'Price competition could intensify if low-cost Chinese tyres flood the Indian market,' warned Poonam Upadhyay, Director at Crisil Ratings. 'This is particularly worrying for the already competitive replacement segment.' Despite ongoing cost pressures, the sector's financial resilience remains strong, aided by conservative balance sheets and prudent capital spending. Capex is expected to remain steady at around Rs 6,000 crore, focused on high-utilisation segments such as passenger car radials and two-wheeler tyres, automation, and backward integration. The top six tyre makers, who account for 85 per cent of industry revenue, are expected to maintain a healthy financial profile, with interest coverage improving to 8.0 times and debt-to-Ebitda ratio easing to 1.0 from 1.3 last year.
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Business Standard
3 days ago
- Business
- Business Standard
GMDC soars 11% in weak market on huge volumes; stock nears 52-week high
Gujarat Mineral Development Corporation (GMDC) share price today Shares of Gujarat Mineral Development Corporation moved higher by 11 per cent to ₹421.65 on the BSE in Friday's intra-day trade amid heavy volumes in an otherwise weak market. The stock price of the industrial minerals company was trading close to its 52-week high of ₹428 touched on July 1, 2025. It had hit a record high of ₹505 on February 5, 2024. The stock has bounced back 86 per cent from its 52-week low of ₹226.20 hit on March 3, 2025. At 01:34 PM: GMDC was trading 10.9 per cent higher at ₹420.80, as compared to 0.68 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped nearly 10-fold. A combined 13.43 million equity shares changed hands on the NSE and BSE. What's driving the 86% surge in GMDC's stock price in past three-and-half months? According to media reports, the PMO is likely to hold a key stakeholder meeting on the rare-earth magnet crisis on July 18. The Ministry of Heavy Industries is preparing to roll out a subsidy scheme worth ₹1,345 crore aimed at promoting domestic manufacturing of rare earth magnets, Union Minister HD Kumaraswamy said on July 11, reported news agency PTI. The proposal is currently under inter-ministerial consultation. A proposed plan by India to spur local production of rare-earth magnets has drawn initial interest from a clutch of large conglomerates; Bloomberg had reported quoting people familiar with the matter, as the country seeks to cut its reliance on China for these vital electric-vehicle and wind-turbine materials. The Indian government is planning an incentive program for private sector firms manufacturing these magnets. Meanwhile, Roopwant Singh, Managing Director, GMDC, while announcing March 2025 quarter results on May 15, 2025 said that FY25 has been a year of steady performance and disciplined operations for GMDC. The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. The progress made in Odisha, particularly in the Baitarani West block, reflects the company's future-ready approach and commitment to timely execution in line with national energy priorities. Looking ahead, GMDC estimate Capex outlay to the tune of ₹15,000 crore up to FY30, with key investments being ₹7,000 crore towards capacity expansion in Lignite, ₹2,500 crore for launch of Odisha mining operations and ₹4,000 crore towards new business build in Critical minerals space. Rare-earth elements (REE) are a group of 17 metals typically occurring together in natural geological environments. The suite of rare earths is split into two distinct sub-categories, the Light Rare-earth Elements (LREE) including Scandium (Sc) and the elements between Lanthanum (La) and Gadolinium (Gd), and the Heavy Rare-earth Elements (HREE) including Yttrium (Y) and the elements between Terbium (Eu) and Lutetium (Lu). GMDC in its FY24 annual reports said that the company has been nominated as a prospective lessee for mining of REE & other associated minerals by the Department of Atomic Energy (DAE) Government of India for one of the world's largest rare earth deposits at Ambadungar, a village in Chhota Udepur district of Gujarat and is in the process of preparation and approval of mining plan. GMDC further said its REE exploration project aims to establish India as a leading global player in this field, benefiting the country's economic and strategic development. The company plans to build a complete REE value chain, from mining to end-product manufacturing. Meanwhile, India is taking a multi-pronged, well-funded, and coordinated approach - with exploration, regulation, state capacity, private participation, recycling, diplomacy - and while the progress is rapid, building a full domestic rare-earth supply chain remains a multi-year journey. Long-term self-reliance is now a national mission, said analysts at InCred Equities.
Time of India
5 days ago
- Business
- Time of India
10k connections, Rs 160 crore savings for consumers: Delhi gets a solar boost
New Delhi: The BSES discoms, BRPL and BYPL, energised over 10,000 solar connections in Delhi, contributing 220 Megawatt peak (MWp) of green energy and helping consumers save Rs 160 crore annually. The highest number of installed rooftop solar net metering connections, about 6,900, is in the domestic category, followed by 1,771 commercial, nearly 1,000 educational, 165 industrial, and 240 other types, said a BSES spokesperson. Nearly 125 residential societies opted for rooftop solar with a load of 5.5 MWp. Every kilowatt (kW) of rooftop solar power generates about 100 to 120 units of electricity every month, and the system's cost can be recovered in three to four years, the official said. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi A 10 kW domestic rooftop solar plant can save around Rs 86,400 annually, besides benefiting the consumers with a subsidy of Rs 1.08 lakh provided under the PM Surya Ghar Muft Bijli Yojana and Delhi Solar Policy. Rooftops are the new power plants, and their number is rising across south, west, east and central Delhi areas covered by BRPL and BYPL, said the BSES spokesperson. "(Rooftop solar net metering connections)...is by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like These Are The Most Beautiful Women In The World Undo also doing its bit to reduce Delhi's pollution besides helping consumers save Rs 160 crore annually," the official stated. The response of the people towards this system is "overwhelming," and consumers from various segments, including residential and commercial establishments, are embracing it "enthusiastically," the official added. The Delhi govt's latest hybrid renewable energy service company (RESCO) scheme will further accelerate rooftop solar adoption in the city, the discom spokesperson said. Consumers can choose between capital expense (Capex) and hybrid RESCO models for the installation of rooftop solar power panels. Under RESCO, consumers will be able to go solar with zero capital investment. In Delhi, although the domestic category leads in terms of the number of solar connections (over 6,900), the highest energised solar load (81 MWp) falls under the commercial category, the official said. The annual savings of the consumers adopting rooftop solar total approximately Rs 160 crore, with the commercial category estimated to save Rs 80 crore, followed by the residential category (Rs 35 crore), educational institutions (around Rs 30 crore), others (Rs 12 crore), and industrial (Rs 12 crore).
