Rudra Global Infrastructure Ltd, a leading manufacturer of steel bars and billets, faces a significant challenge in managing energy costs, which constitute a substantial portion of its manufacturing expenses. With the aftermath of the COVID-19 pandemic amplifying these concerns, the company’s board is proactively seeking alternative approaches to mitigate production costs while aligning with environmental sustainability goals.
Recognizing the impact of its operations on the environment, Rudra Global Infrastructure is committed to reducing its carbon footprint. To achieve this, the company aims to enhance its reliance on renewable energy sources to meet its captive energy demand, thereby reducing its dependence on conventional energy sources.
In response to the Indian government’s emphasis on solar power adoption, Rudra Global Infrastructure is poised to embrace renewable energy solutions. The company plans to establish solar and wind farms, with the goal of transitioning from its current 10% reliance on renewable energy to 100%.
Rudra Global Infrastructure has outlined a phased approach to transition towards renewable energy. In the initial phase, the company plans to install a 20MW capacity, requiring a total capital expenditure of approximately Rs. 100 crore. This initial step sets the foundation for the company’s broader objective of achieving full reliance on renewable energy by 2029.
The company’s decision to invest in renewable energy is not only environmentally conscious but also financially prudent. With an average lifespan of 25 years for solar and wind farms, coupled with favourable tariff rates offered by PGVCL, Rudra Global Infrastructure anticipates reaching the break-even point within five years of commercializing the project. Beyond financial viability, this transition is expected to yield substantial long-term savings for the company while contributing to sustainable practices.
Rudra Global, a diversified group involved in ship recycling, oxygen plant, induction furnace, and re-rolling mill businesses, boasts a group turnover of approximately Rs. 1000 crore annually.
| Particulars | YOY Growth | Dec-23 | Dec-22 |
| Sales | 26.32% | 144.00 | 114.00 |
| EBIDT | 12.86% | 6.67 | 5.91 |
| Net profit | 26.57% | 1.81 | 1.43 |
| EPS (Rs) | 28.57% | 0.18 | 0.14 |
Recent financials reveal robust year-over-year growth in December 2023, with sales up by 26.32% to Rs. 144.00 crore, EBIDT increasing by 12.86% to Rs. 6.67 crore, net profit rising by 26.57% to Rs. 1.81 crore, and EPS showing a strong growth of 28.57% to Rs. 0.18. These results underscore the company’s solid performance and financial strength
Conclusion
Rudra Global Infrastructure’s strategic shift towards renewable energy resources reflects its commitment to environmental stewardship and financial sustainability. By embracing solar and wind power, the company not only aims to reduce its operational costs but also sets a precedent for responsible corporate citizenship in the manufacturing sector. As Rudra Global Infrastructure embarks on this journey, it paves the way for a greener, more sustainable future for both the company and the communities it serves.
Published on: Mar 11, 2024, 5:14 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
