Shares of Vikas Ecotech Ltd rallied more than 11 per cent during the early trade on Thursday after the company informed the bourses about its debt reduction program. The company intends to become a ‘zero debt entity’ in 2024, it said in an exchange filing.
Vikas Ecotech informed the bourses that it has paid back about Rs 3 crore of bank debt, which has been now reduced to Rs 84.30 crore. The company has reduced its debt obligation by Rs 85.70 crore, the exchange filing said.
The company also added that it intends to become a 100 per cent debt-free company by the year 2023-2024. The company also said that it is looking to pay an additional Rs 29.5 crore, before the close of this quarter, bringing down the debt to Rs 54.8 crore.
Following the announcement, shares of Vikas Ecotech jumped over 11 per cent to Rs 3.16 on Thursday, before giving up its gains partially. The stock had settled at Rs 2.84 on Wednesday, after testing its 52-week low at Rs 2.77.
Vikas Ecotech reported a net profit of Rs 7.77 crore with revenue from operations at Rs 333.34 crore for the nine months that ended on December 31, 2022. It had reported a profit of Rs 0.23 crore with an operational revenue of Rs 167.33 crore in the year-ago period.
New Delhi-headquartered Vikas Ecotech is engaged in the business of specialty polymers, specialty additives and chemicals for plastics & rubbers industries, catering to a wide horizon of applications in agriculture, infrastructure, packaging, electrical, footwear, pharmaceuticals, automotive, medical devices and components and other consumer goods.
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