The shares of this smallcap compnay jumped upto 3 percent in Monday’s trading session after receiving an order worth Rs. 168 crores from an Italy-based compnay for the Hail & Ghasha Development Project of Abu Dhabi National Oil Company in the United Arab Emirates.
Price Movement:
With a market capitalization of Rs. 9,830 crores, the shares of Ion Exchange India Ltd (NS:IONX) started Monday’s trading session on a higher note at Rs. 677 compared to its previous close of Rs. 665.05. During the trading session, the shares hit a high of Rs. 688, gaining around 3 percent and are currently trading at Rs. 669 apiece.
Is Ion Exchange a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had been awarded contracts from Technimont SpA, Italy for De-Oiling, Demineralization and Condensate Poly Unit Packages for the Hail and Ghasha Development Project of ADNOC, U.A.E. totalling to approximately Rs. 168 crores. The projects are to be completed within 61 weeks from Project Award dates.
Financials:
Looking at the company’s financial performance, the revenue decreased by 27 percent from Rs. 782 crores during the March quarter to Rs. 568 crores in the June quarter. On the other hand, the net profits decreased by around 38 percent from Rs. 72 crores to Rs. 45 crores during the same timeframe.
Order Book:
As of June 2024, the company has a total order book valued at approximately Rs. 3,394 crores. This figure includes various projects across different segments of the company, primarily in engineering and chemicals, reflecting a robust pipeline of contracts and anticipated revenue streams.
Additionally, the company boasts a bid pipeline of around Rs. 8,233 crores, indicating substantial future project opportunities.
Future Outlook:
The company anticipates a 15 percent to 20 percent growth in topline revenue for FY25, driven primarily by the engineering segment. This is supported by a healthy order book.
Furthermore, the company is well-positioned to benefit from government initiatives aimed at improving water and wastewater infrastructure, with significant funding allocated for these projects.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 19.25 percent and a return on capital employed (RoCE) of 23.47 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 8.25 percent.
Company Profile:
Ion Exchange (India) is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, wastewater treatment, recycling, zero liquid discharge, sewage treatment, packaged drinking water, seawater desalination etc.
Written By Vaibhav Patil
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