Gravita India surges by 5 per cent on capacity expansion

Gravita India Limited, an India-based manufacturer and exporter of lead metal, surged by nearly 5 per cent in intraday trade on Wednesday as the company announced that it has substantially added more capacity to its Chittoor plant at Andhra Pradesh.
 
The company increased the capacity of its Chittoor plant from 12000 mtpa to 28000 mtpa, making it the company’s flagship plant. The company has already been utilizing over 65 per cent of the total capacity of its Chittoor plant.
 
The following expansion in the company’s production capacity has come with a total investment of Rs 20 crore by the company, which has been raised in tranches through term load as well as balance from internal accruals.
 
The expansion by the company has come as an attempt to strengthen its presence in the southern markets besides an attempt to give a boost to its exports to the South East Asian region.
 
The company had posted a 52.48 per cent in its revenue to Rs 528.19 crore in FY17 on a year on year basis. The company’s profit after tax increased by 592.66 per cent to Rs 22.65 crore in FY17 against the previous fiscal.
 
At 12:10 hrs IST, the stock was trading at Rs 130, up by 3.67 per cent on the NSE on September 6, 2017. The stock had hit an intraday high of Rs 131.80 at 11:15 hrs IST on the same day.