Penny Stock Vikas Ecotech Cuts Debt, Aims To Be Debt Free By FY24

Vikas Ecotech has informed exchanges through a regulatory filing that it has paid back Rs 70 million in debt.

"The company has paid back Rs 70 Million Approx," it said.

This takes the total amount of bank-debt down to Rs 650 Million Approx and the overall bank-debt reduction till date from the peak to Rs. 62 Million.

It is pertinent to add that the Company has set a goal for becoming a 100% Debt Free entity within FY 2023-2024 under Debt Reduction Program, on persistence and support extended by the promoters of the Company.

"Post the current Repayment, the Company intends to payback additional Rs. 100 Million before the close of this quarter, bringing down the debt levels to Rs 550 Million Approx., paving the way towards becoming a 'ZERO Debt Company' within FY 2023-24," it said.
On Friday, Vikas Ecotech Ltd (VEL) disclosed receiving an order worth Rs 50 crore for the delivery of a variety of products, including flame-retardant aluminium trihydrate.

In a regulatory filing it said that it had been successful in obtaining orders totaling more than 1000 tonnes for the speciality grades of thermoplastic elastomers (TPE), thermoplastic rubber (TPR), thermoplastic vulcanizates (TPV), organotin heat stabilisers (MTM) and flame-retardant aluminium trihydrate (ATH) compounds. According to the record, the total value of these orders exceeds Rs 500 million, and the delivery dates range from August to September 2023.

Vikas Ecotech said it has "garnered orders grossing to more than 1,000 tonnes for the niche grades of thermoplastic elastomers, rubber, vulcanizates, organotin heat stabilizers and flame retardant aluminum trihydrate (ATH) compounds."

Vikas Ecotech Ltd recorded net sales of Rs 57.70 crore in June 2023 quarter down 34.95% from Rs. 88.69 crore in June 2022 quarter. Its standalone net profit stood at Rs. 1.55 crore in Q1FY24 up 6.06% from Rs. 1.46 crore in Q1FY23. EBITDA stood at Rs. 5.28 crore in the quarter under review up 4.35% from Rs. 5.06 crore in the year-ago quarter whereas Vikas Ecotech EPS has dropped to Rs. 0.01 in Q1FY24 from Rs. 0.02 in Q1FY23.

On Friday, the shares of Vikas Ecotech closed on the NSE at Rs 3 apiece. The stock made a 52-week-high of Rs 4.15 on (19-Jan-2023) and a 52-week-low of Rs 2.35 on (28-Mar-2023).