Praj Industries Ltd has reported a decline in sales resulting in loss during first quarter of the current fiscal year primarily due to slow market uptake caused by Covid-19 pandemic.

 

The company reported net loss of Rs 10.50 crore in Q1FY21 as against net profit of Rs 8.77 crore in same quarter last year.

 

Sales declined 38.78% to Rs 129.55 crore versus Rs 211.60 crore during the previous quarter ended June 2019.

 

Company's order intake during the quarter increased during the first quarter and reached Rs. 310 crore as against Rs. 168 crore in the same period last year. The consolidated order backlog as on June 30, 2020 stood at Rs. 1263 crore versus Rs. 886 crore in Q1FY20, which comprised 84% domestic orders and 16% international orders. 

 

Praj saw increased traction in pharma grade alcohol demand across the world. The company is executing its single largest pharma grade alcohol facility for customer in the US.

 

The company has also received contract for supply of critical equipment for the HPCL Bhatinda 2G biorefinery project.

 

To augment reach and application of Bio-Mobility platform, Praj Industries and Automotive Research Association of India (ARAI) entered into an MoU, to jointly address technologies to propagate the use of biofuels in a variety of applications including usage in ICE in the transportation sector.

 

The board has approved signing of Master Framework Agreement (MFA) with Gevo Inc., USA, to collaborate on providing Sustainable Aviation Fuel (SAF). Gevo and Praj will provide technology, plant equipment and EPC services to customers to produce renewable lsobutanol that will be aggregated and transferred to various refineries. Both parties will also provide technology, plant equipment and EPC services to refineries for converting renewable lsobutanol into SAF through the ASTM-approved pathway of Alcohol-to-Jet (ATJ).

 

Praj expanded its business horizons and launched Bio Prism technology portfolio for producing biobased Renewable Chemicals and Materials (RCM). The company has recently signed MoU with Lygos Inc, USA based biotech company, to co-develop Advanced Lactic Acid Yeast Technology for Bio-based Products. Praj has also entered into an MOU with National Chemical Laboratory (NCL) for developing promising innovative technology solutions in the RCM space.

 

Commenting on the company's performance for Ql FY2021, Shishir Joshipura, CEO & MD, Praj Industries said, "First half of the quarter was impacted due to pandemic induced lock down. The second half of the quarter saw progressive resumption and opening of operations across facilities and project sites. Our customer engagements across business domains continue to remain strong and we are encouraged by the traction in order enquiries and leads. We have further augmented our Biomobility platform offerings. Our MoU with ARAI for application development of advanced biofuels for surface transport and agreement with Gevo Inc., USA for sustainable aviation fuel will further expand the market and our offerings".