Recycling player Vikas Ecotech has announced that it has significantly cut its debt in the current financial as it aims to achieve the target of becoming a debt-free entity. The development assumes significance as it comes in the backdrop of the government's efforts to support small and medium enterprises that contribute more than 30 per cent to the country's GDP.
The small cap specialty chemicals stock in an exchange filing said that it has paid back Rs 70 million as part of its debt-reduction plan. With this, the total amount of bank-debt has now come down to Rs 650 million.
"Has set a goal for becoming a 100 per cent debt free entity within financial year 2023-24 under debt reduction programme," it said in a statement on BSE.
Post the current repayment, the management intends to payback additional Rs 100 million before the close of this quarter (Q2FY2024).
This will bring down the debt levels to Rs 550 million, paving the way towards becoming a zero debt entity within the current fiscal.
Recycling player Vikas Ecotech Ltd (VEL) on Friday announced bagging a Rs 50-crore order for supply of multiple materials including flame retardant aluminum trihydrate.
The Delhi-based company is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others. The company is also expanding its business portfolio by manufacturing steel pipes and MDPE (medium-density polyethene) pipes.
In a statement, the company 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."
The value of the order is over Rs 500 million (Rs 50 crore), with delivery schedules ranging through August-September 2023, VEL said.
Vikas Ecotech shares have yielding a return of 58 per cent in the past two years. The company has a market capitalisation of Rs 337 crore.
