Navin Fluorine International rose 4.38% to Rs 1265.75 after the company announced signing a multi-year contract worth about Rs 2900 crore with a global company.
Navin Fluorine said it has entered into a $410 million (about Rs 2900 crore) multi-year contract with a global company for manufacture and supply of a high performance product in the fluorochemicals space. The project will entail an investment of about $51.50 million (Rs 365.50 crore) in the manufacturing facility and $10 million (Rs 71 crore) in captive power plant. The company will execute this capex and the project through its wholly owned subsidiary, Navin Fluorine Advanced Sciences. The facility will be located at Dahej, Gujarat. The capex will be funded through a mix of internal accruals and debt. The supplies are expected to commence from Q4 of FY2022.Commenting on the development Radhesh Welling, managing director of Navin Fluorine said, "This agreement, which represents Navin Fluorine's largest contract to date, continues to establish us as a leader in production and delivery of high-performance products within fluorination space. This agreement will help further expand our product portfolio and it reinforces the trust global customers have in Navin Fluorine's capabilities. It is testament to our deep and wide fluorine experience and our strength in successfully scaling up of complex chemistries. This is beginning of our entry into higher value HPP segment and we shall continue to add more products in this segment."
Meanwhile, the company also declared a dividend of Rs 4 per equity share. The record date is 6 March 2020.
Navin Fluorine International is one of the manufacturers of speciality fluorochemicals. On a consolidated front, net profit rose 16.8% to Rs 45.13 crore in Q3 December 2019 as against Rs 38.63 crore reported in Q3 December 2018. Net sales grew 11.4% year-on year (YoY) to Rs 260.50 crore.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
