Refex Industries’ share price hits upper circuit on good FY23 results 

share price Revex Industries It rose on the NSE by ₹71.10, reaching the upper circle by 20 per cent, and closing at an all-time high of $426.64 per share of ₹10.

As many as 7.14 thousand shares were traded today, for a value of Rs 30.37 crore.

This came on the heels of the company’s report, on Thursday, more than Triple its sales volume and more than double its net profit for 2022-23. Turnover for the year was Rs 1,637 crore, compared to Rs 448 crore for 2021-22. Net profit also rose to Rs. 116 crore from Rs. 45 crore earlier. The company’s board of directors has recommended a dividend of $2 per share, or 20 percent.

What lifted Refex’s performance was “coal and ash handling,” a business the company got into about three years ago. Anil Jain, Managing Director of Refex Industries, said the efforts of the first two years paid off last year Business line today. Coal and ash handling turnover increased to Rs. 1,286 crore, from Rs. 320 crore earlier. Profits from the segment increased to Rs. 129 crore, from Rs. 27 crore. He bluntly said, “This is only the beginning.”

Refex Industries started handling coal and ash with just one customer, but now has nine — all thermal plants that might need to be closed if the ash isn’t removed quickly. Refex has organized its business in such a way that its trucks transport the ash from the thermal plants and bring back the coal. Jain said thermal ash processing in India is worth Rs 80,000 crore, almost entirely served by the unorganized sector. He said thermal power plants see value in services that build on the technology, enabling traceability of disposed ash, offered by companies such as Refex. Last year, the company’s customers offered it about 20-30 percent ash handling, but Jain hopes that in current and coming years, customers will allow Refex to remove a greater proportion of the ash. The company also added two clients in April and another client in May. He said that as more customers and existing customers provide larger volumes, Refex will gain.

The two-year-old Refex Industries’ energy trading business generated revenue of ₹187 crore and profit of ₹42 crore, from zero in the previous year. The company also operates in the field of solar energy generation and trade in refrigerants. These grossed ₹5 crore and ₹4 crore in 2022-23, compared to ₹4.4 crore and ₹6.1 crore in 2021-22.