BCL Industries shares jump 11% on order win to supply ethanol to OMCs

Shares of BCL Industries Ltd surged more than 11 per cent during the trading session on Monday after the company made some announcements of order win and allocations to it. The company informed about the same through an exchange filing early in the session on Monday.

"BCL Industries along with its subsidiary company (Svaksha Distillery Limited) had participated in a tender floated by oil marketing companies (OMCs) inviting various molasses and grain-based distilleries for supplying ethanol during ethanol supply year (ESY) commencing from November 1, 2023 to October 31, 2024 at their various locations across the country," it said in a filing.

After the closure of the first round OMCs have allocated BCL Industries to supply a total of Rs 4.96 lakh litres amounting to Rs 339 crore. The company is ordered to supply 2.48 KL ethanol each in the period November 2023 to January 2024 and February 2024 to April 2024.

Similarly, Svaksha Distillery has been allocated to supply a total of 3.24 lakh litres, amounting to Rs 561 crore. The subsidiary has bagged allocations for 1.44 KL in the period November 2023 to January 2024 and 4.28 KL for February 2024 to April 2024, the filing added.

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According to the filing, the total order is to supply 8.2 lakh litre ethanol amounting to Rs 561 crore. "In addition to above Svaksha Distillery has also bagged an order to supply 0.1 lakh litre of ethanol to Reliance Industries Ltd with an order value of Rs 6.73 crore," it added.

Following the announcement, shares of BCL Industries surged more than 11 per cent to Rs 60.25 on Monday, with a total market capitalization of more than 1,500 crore. The scrip was marginally shy of its 52-week high at Rs 60.85 and up 110 per cent from its 52-week low at Rs 28.60. The counter had settled at Rs 54.08 in the previous trading session on Friday.

BCL Industries returned to black in the September 2023 quarter as it posted a consolidated net profit of Rs 19.67 crore, compared to a net loss of Rs 81 lakh in the year-ago period. The total income for the company in the second quarter of the ongoing fiscal year grew 6 per cent YoY to Rs 482.72 crore in Q2FY24 from Rs 455.24 crore in the same quarter a year ago.

Shares of BCL Industries traded ex-split in 1:10 ratio in October 2023. The company had announced the subdivision of its equity shares in a 1:10 ratio earlier this year. BCL Industries is the only company in India and the South Asian region to have a forward and backward integrated ethanol plant.

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