Vikas Ecotech shares rise after strong quarterly performance

Shares of Vikas Ecotech Ltd rose 3 per cent during the trading session on Tuesday after the company announced its earnings for the period ended on March 31, 2023. The speciality chemicals company, which is now venturing into diversified businesses, informed about the same via an exchange filing.

Vikas Ecotech reported a 46 per cent increase on a year-on-year (YoY) basis in its net profit at Rs 1.79 crore in the March 2023 quarter, against a net profit of Rs 1.23 crore in the year-ago period. The company had clocked a net profit of Rs 2.78 crore in the December 2022 quarter.

The company reported revenue from operations at Rs 69.64 crore for three months ended on March 31, 2023. The company's revenue from operations stood at Rs 83.09 crore in the same quarter the previous year, while its operational revenue stood at Rs 111.32 crore in the preceding quarter.

Following the announcement of results, shares of Vikas Ecotech jumped more than 3 per cent to Rs 3.05 apiece before giving up some gains. The company was commanding a market cap close to Rs 285 crore. The scrip had settled at Rs 2.97 apiece on Monday.

For the year ended on March 31, 2023, Vikas Ecotech's profit jumped 6 times to Rs 8.34 crore from Rs 1.39 crore in the previous year. The company reported a more than 60 per cent rise in the revenue from operations at Rs 402.67 crore, compared to a revenue of Rs 250.42 crore during the period under review.

The company recently announced its venture into green and eco-friendly infrastructure development projects in collaboration with Nice Apartment Constructions, a company engaged in the real estate development of commercial and residential projects in Delhi-NCR.

Vikas Ecotech has entered into a collaboration arrangement wherein it will be inducting 70 per cent of the total project cost as the collaborator. The estimated project cost of targeted projects is about Rs 115 crore, including the cost of lands as well as the costs to be incurred for the construction and development of commercial buildings at the locations in Gurugram.