Recycling stock crashes 19% after reporting 18% YoY decline in net profit in Q3

The shares of one of Asia’s largest recyclers of End of Life Tyres (ELTs), plunged 19 percent intraday after the company announced an 18 percent decrease in its net profits in Q3 FY25.

Price Action

With a market capitalization of Rs 1,866.52 crore, Tinna Rubber and Infrastructure Limited plunged 19 percent in Monday’s trading session and made an intraday low of Rs 976.10 per share compared to its previous closing price of Rs 1,206.85 per share. The stock retraced from its day’s low and was trading at Rs 1,089.65 which is 9.7 percent lower than the previous closing price.

What Happened

The shares of Tinna Rubber and Infrastructure Limited fell after the company reported its Q3FY24-25 results. Its revenue from operations increased by 32 percent from Rs 93 crore to Rs 122.7 crore in Q3FY25. On a quarter-on-quarter basis, the revenue rose by 4.3 percent from Rs 117.6 crore. 

However, the net profits fell around 18 percent percent year on year from Rs 9.95 crore to Rs 8.15 crore in Q3FY25. On a quarter-on-quarter basis, the company’s net profits fell by 32 percent from Rs 12 crore.

Further, the company’s EPS decreased by 18 percent year on year from Rs 5.81 to Rs 4.76. On a quarterly basis also, the EPS fell by 33 percent from Rs 7.08. 

Also read: Maharatna stock jumps over 3% after receiving ₹8,000 Cr LoI from Maharashtra Govt

Fund Raising 

Tinna Rubber and Infrastructure Limited has also announced a Qualified Institutional Placement that will be used to raise funds worth Rs 150 crore in one or more tranches.

Company Overview

One of Asia’s largest recyclers of End of Life Tyres (ELTs), Tinna Rubber and Infrastructure produces crumb rubber and steel wires. With over 5 decades of experience in rubber processing, this is the world’s only company to have the most diversified applications out of waste tyre recycling. It is also the largest producer of Crumb Rubber, Crumb Rubber Modifier (CRM) and Micronized Rubber Powder (MRP). 

The company operates in four different segments namely, Infrastructure, Industrial, Steel and Consumer. It has five domestic recycling facilities and one situated in Oman. Most of the domestic recycling plants are situated near ports to enable the import of waste tyres and the re-export of finished products. They have also stated their vision that the company aims to expand to 10 locations by 2027.

Written by Shwetha Sairam

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