Globus Spirits hit an upper circuit of 5% at Rs 1138.20 after the company won a tender floated by oil marketing companies (OMCs) for supplying ethanol.
In an exchange filing made after market hours yesterday, the company said that it had participated in a tender floated by oil marketing companies (OMCs) vide dated 12th November 2021 inviting various molasses and grain-based distilleries for supplying ethanol for the period commencing from 01 December 2021 till 30 November 2022 at their various locations across the country.
Accordingly, after the closure of the first round of offerings, the company has been allocated as per its offered quantity of 9.68 crores litres of ethanol from its three manufacturing units at Bihar, West Bengal and Haryana.
The unit located at West Bengal will initiate the supply once commercial production at the enhanced capacity commences.
The per unit rate of ethanol made from damaged food grains has been fixed at Rs 52.92 per litre with an increase of 2.65% from the previous year, the rate for ethanol made from surplus food grains remains unchanged.
Many countries, including India, have adopted ethanol blending in petrol in order to reduce vehicle exhaust emissions and also to reduce the import burden on account of crude petroleum from which petrol is produced.
Globus Spirits is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), ethanol, bulk alcohol and franchise bottling.
The company’s net profit rose 74.43% to Rs 52.52 crore on a 16.67% increase in sales to Rs 382.22 crore in Q2 FY22 over Q2 FY21.
The above news was originally posted on www.business-standard.com