The Board of Praj Industries took on record the Q3 FY 08 financial results of the Company at the recently convened Board Meeting.

For the Q3 FY 08, profit after tax stood at Rs. 39.44 crores (Rs. 33.64 crores) while sales stood at Rs. 180.22 crores (Rs. 177.87 crores).

On a 9-month performance basis, the Company has recorded a growth of around 60% in PAT while sales have grown at 20% over corresponding 9 months.

Comments form the Top Management: “The results demonstrate that, the Company has posted robust performance inspite of assimilation of all costs related to consolidation and preparation for quantum growth.” Says Pramod Chaudhari, Chairman, Praj

“We have recorded enhanced operating margins over previous quarter of FY08.The EBIDTA margins in the third quarter are at 21% ,a marked jump over Q2 FY08. Praj has gained significant order wins in the Q3 FY08. The order book is at Rs. 900 crores. With our new manufacturing facility at SEZ Kandla in place, we will now look to greater speed in production.” said Shashank Inamdar, CEO & MD, Praj.

Dividend

The Board of Directors of Praj have approved an interim dividend at 99% working out to Rs. 1.98 per share. This is on the doubled share capital of Rs. 36.58 crores (post 1:1 bonus issue)

Market Round-up

In India, Praj has been selected by EID Parry to supply two turnkey distillery plants for their projects in Tamil Nadu. Apart from this Praj has been contracted for many other distillery projects – both starch and sugar based in India. The Company commissioned the first ever Greenfield corn based distillery in Maharashtra for Viraaj Alcohol. On the brewery engineering and equipment front too, Praj has been selected by many leading beer producers to partner them in India. These include SAB Miller, United Breweries.

On the international front, Praj has recently been awarded a contract for the largest ethanol plant in Poland. Promoted by the Sniace Group of Spain, the project envisages use of multiple grain feedstocks.

With the Energy Independence Bill having been made into a law in USA, there is expected to be renewed momentum in the market. Going by the early signs, there is already an improvement in the ethanol prices.

“The Energy Bill is a bold step towards second generation biofuels, which will accord greater sustainability to the sector. Praj has been working on second generation technologies and has invested considerably in R & D. With the upscaled R & D facility, which is expected to be in operation by March, we will see many of the programs gather speed,” said Pramod Chaudhari.

Praj recently announced formation of Joint Venture Company called Praj Jaragua Bioenergia in Brazil. Praj was recently awarded the Forbes ‘Best Value Creator” award in the under one billion Company category.

Apart from the subsidiary in Brazil, Praj has a subsidiary Company in USA, Praj Schneider and a JV in Europe, BioCnergy Europa B.V.

Sourced From: Genesis Burson-Marsteller

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