Kiri Industries has zoomed up hit a new 52-week high today at Rs.145 with volumes almost doubling on the counter. The stock remains around the same high levels, some 13% up.

Today morning, the company announced two things – reduction in its debt and the sudden dramatic change in the dye and intermediaries sector.

First on the debt front. The company announced that it has executed agreements to settle all of its debt by the end of FY16. The total borrowings have been reduced from 853.13 crore to Rs 410.6 crore, which is about 51.87% reduction compared to the previous financial year.
Further, as per settlement agreement executed, the company is committed to settle and repay majority of the balance debt during current fiscal of FY17.

On the sectoral front, the company has said that there has been a sudden improvement in the market for dyes intermediate, especially H-acid and vinyl sulphone due to closure of a leading manufacturing plant in China.

Kiri has explained that average price of H acid up at Rs.900-1000/kg from Rs.300-360/kg and that of vinyl sulphone has risen from Rs.160-180/kg to Rs.240-275/kg. The company has installed capacity to manufacture 7200 MTPA of H-acid and 18000 MTPA of vinyl sulphone.

Following this announcement, in a TV interview the company’s MD has said that he expects revenue for FY17 to be around Rs.1200-1300 crore and Rs.1000 crore in FY16; that is if the price hike sustains for the next 6 months.