Rain Industries gains after commencement of operations of power plant

Rain Industries rose 4.43% to Rs 47.10 at 09:49 IST on BSE after the company's wholly owned subsidiary Rain Cements commenced operations of waste heat recovery based power plant in Kurnool district, Andhra Pradesh.

The announcement was made after market hours on Friday, 23 September 2016.

Meanwhile, the S&P BSE Sensex was down 121.16 points or 0.42% at 28,547.06

On BSE, so far 41,000 shares were traded on the counter as against average daily volume of 2.07 lakh shares in the past one quarter. The stock hit a high of Rs 47.85 and a low of Rs 46.25 so far during the day. The stock had hit a 52-week low of Rs 26.05 on 12 February 2016. The stock had hit a 52-week high of Rs 49.50 on 9 September 2016. The stock had underperformed the market over the past 30 days till 23 September 2016, falling 2.7% compared with 2.99% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 36.05% as against Sensex's 8.60% rise.

The small-cap company has equity capital of Rs 67.27 crore. Face value per share is Rs 2.

Rain Industries said that on 22 September 2016, Rain Cements, a wholly owned subsidiary company has commenced operations of waste heat recovery based power plant to generate up to 7 megawatts (MW) of gross electrical energy from the waste heat and the flue gases evolved during the cement manufacturing process at Boincheruvupalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. The project was completed at a cost of Rs 70 crore and the same was funded from internal accruals, Rain Industries said. The process of waste heat generation is environmental friendly that will bring down the flue gas temperatures. The heat recovery from the flue gases not only saves large quantities of fossil fuels but also substantially reduces the cost of power generation, the company said.

Rain Industries' consolidated net profit rose 7.84% to Rs 156.51 crore on 2.16% fall in total income to Rs 2,579.89 crore in Q2 June 2016 over Q2 June 2015.

Rain Industries (formerly known as Rain Commodities) and its wholly owned subsidiaries, namely, Rain Cements, Rain CII Carbon (Vizag), Rain CII Carbon LLC, USA and Rgers are engaged in the production of cement, calcined petroleum coke and power and high-quality basic and specialty chemicals (coal tar pitch etc.).

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