Deriving Value from Waste through Modern Recycling and Recovery
Risk Mitigation by BACK TO BACK HEDGING mechanism
Back-to-Back Hedging
GRAVITA
We recycle to save environment
Core Inventory +Back-to-Back
Hedging
.
To mitigate the risk of commodity prices fluctuation
from June. 2016
• Metal equivalent of the scrap bought, is sold on the
same day
·
Pricing against Customer contracts - Natural
Hedging
• Forward Contracts on LME Exchange for
balance quantity - till final sale to customer
$ 2379
•
Core inventory was not part of back to back
hedging
2.50%
.
•
Gravita started hedging of core inventory also in June,
2019 by taking a forward contact on LME Exchange.
June, 2019 onwards Gravita is enjoys stable margins
and is not affected by the commodity price fluctuations
$2283
$ 2105
$1867
10.21%
$ 2122
$1947
9.70%
10.21%
8.32%
8.61%
9.70%
7.23%
6.50%
6.11%
5.00%
-1.50%
7.23%
8.32%
FY18
FY19
FY20
FY21
FY22
FY23
-EBITDA %
Inventory Gain/Loss
-LME
■Business Margin
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