National Peroxide slips on temporary plant shutdown

National Peroxide fell 2.29% to Rs 1890 after the company announced temporary shutdown of its plant located at Kalyan, Maharashtra, from 30 September 2019 onwards.

National Peroxide said that the plant at Kalyan, Maharashtra, has been temporarily shut down for carrying out expansion of production capacity from 95,000 MT per annum to 150,000 MT per annum. The plant will remain under shutdown for an approximate period of 90 days.

The total cost of the said capacity expansion is approximately Rs 200 crore and the same has financed via external commercial borrowings and internal accruals. The increased capacity will help the company to improve its market share and overall performance.

During the said period the company will continue to service the key customers uninterruptedly from the inventory of finished goods accumulated for the purpose.

Meanwhile, the S&P BSE Sensex was up 123 points or 0.32% to 38790.39.

On the BSE, 2541 shares were traded in the counter so far compared with average daily volumes of 9061 shares in the past one quarter. The stock hit a high of Rs 1923 and a low of Rs 1850 so far during the day.

The stock hit a 52-week high of Rs 5124.95 on 16 Oct 2018. The stock hit a 52-week low of Rs 1272 on 07 Aug 2019.

On a consolidated basis, National Peroxide's net profit fell 66.6% to Rs 14.63 crore on a 46.2% decline in net sales to Rs 57.18 crore in Q1 June 2019 over Q1 June 2018.

National Peroxide (NPL) is a pioneer in India for peroxygen chemicals and is the largest manufacturer of Hydrogen Peroxide in India. Its fully integrated manufacturing site for Hydogen Peroxide is located at Kalyan in Maharashtra (India).

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