Ganesh Benzoplast Limited (GBL), a company listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), has announced the completion of a survey conducted by the Income Tax Department. The company, known for its infrastructure and chemical manufacturing operations, provided full cooperation throughout the proceedings.

Survey Details

According to the company's disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the survey/search operation commenced on October 10 and concluded on October 12. Ganesh Benzoplast emphasized its commitment to transparency by extending complete cooperation to the Income Tax Department during the three-day process.

Company's Response

In a filing to the stock exchanges on October 13, Ekta Dhanda, Company Secretary & Compliance Officer of Ganesh Benzoplast, stated:

"The said survey/search was completed on October 12, and the Company has extended full cooperation to the Department."

This statement underscores the company's approach to regulatory compliance and its willingness to assist with official inquiries.

Impact on Operations

While the company has not provided specific details about the nature or scope of the survey, it is important to note that such proceedings are not uncommon in the corporate world and do not necessarily imply any wrongdoing. Ganesh Benzoplast's prompt disclosure and cooperative stance demonstrate its commitment to maintaining open communication with shareholders and regulatory bodies.

Investors and stakeholders will likely monitor any potential outcomes or further disclosures related to this survey. As of now, the company has not reported any material impact on its day-to-day operations resulting from the Income Tax Department's actions.

Ganesh Benzoplast Limited continues to operate its core businesses, which include liquid storage terminals and chemical manufacturing.

As this situation develops, stakeholders are advised to stay tuned for any additional information that the company may provide in accordance with regulatory requirements.

Ganesh Benzoplast Limited (GBL) has reported a robust performance for the first quarter, with consolidated revenue rising 9% year-on-year to INR 956.00 crore. The company's chemical division emerged as a standout performer, while its core liquid storage terminal (LST) business faced temporary challenges.

Financial Highlights

• Consolidated revenue increased 9% to INR 956.00 crore from INR 875.00 crore in the same quarter last year
• Consolidated profit after tax grew 10% to INR 181.00 crore
• Earnings per share rose 11% to INR 2.52

Chemical Division Shines

The chemical division demonstrated exceptional growth:

• Turnover increased 26% to INR 494.00 crore
• Profit before tax surged 223% to INR 71.00 crore

This remarkable performance was attributed to plant upgrades and improved raw material procurement policies, resulting in better yields and cost-effectiveness.

LST Business Faces Temporary Setback

The company's liquid storage terminal business experienced a slight decline:

• Rental income decreased 8% due to extensive maintenance work at the JNPT terminal during April-June
• Management expects 5-6% annual rental growth going forward

Strategic Developments

1. LPG Terminal Project: The joint venture with BW for an LPG terminal has been called off after BW decided to focus on their core shipping business. GBL retains the 11-acre land at JNPT and is evaluating options for liquid storage or scaled-down LPG facilities.

2. JNPT Land Lease: GBL is in the process of renewing its lease at JNPT for another 30 years. While lease costs are expected to increase, the company plans to pass these on to customers over time.

3. Morgan Legal Case: The long-standing Morgan legal case has been settled and closed, removing a significant overhang for the company.

4. Future Plans: By the end of the current quarter, GBL plans to finalize its strategy for utilizing the remaining land at JNPT, considering options such as liquid storage, LPG, or ammonia facilities.

Management Commentary

Rishi Pilani, Chairman and Managing Director, stated, "We are pleased with the strong performance of our chemical division, which has shown consistent growth over the past five quarters. While our LST business faced temporary challenges due to maintenance activities, we expect it to recover in the coming quarters."

He added, "With the resolution of the Morgan case and the ongoing evaluation of our JNPT land utilization, we are well-positioned for future growth. We are carefully assessing market demands and potential partnerships to make the best use of our assets."

Looking Ahead

As Ganesh Benzoplast Limited moves forward, the company is focusing on:

1. Finalizing plans for the unutilized JNPT land
2. Continuing to improve efficiencies in the chemical division
3. Exploring potential strategic partnerships or demerger options for the chemical business
4. Implementing the renewed JNPT lease terms
5. Considering dividend payouts for shareholders in the current financial year

With its strong financial performance and strategic initiatives underway, Ganesh Benzoplast Limited appears well-positioned for continued growth in the coming quarters.