Ion Exchange Stock Jumps 7% After Securing ₹161.2 Crore Contracts from Adani Power 

The shares of Ion Exchange have seen an increase of 7% on September 19. It is engaged in water treatment and environmental management and has won contracts worth about ₹161.19 crore from Adani Power Ltd.

The shares of Ion Exchange was trading 7.53% higher at ₹695.80 at 10:41 AM as Sensex rose 0.61% at 83,458.26. Since the beginning of the year, the stock has jumped 22%, which is higher compared to Nifty's 16% up movement. On a 12-month basis, the company's stock climbed 33%, bettering Nifty's 27% rise during the same period.

Under the new contracts, the company will deliver full-service water and environmental management systems for two 800 MW units at Adani's Raipur and Raigarh ultra-superpower projects.

In a filing to the stock exchange, Ion Exchange said, "The company has bagged orders from Adani Power Limited worth around ₹161.19 crore for integral water and environmental management solution as required for 2 x 800 MW units at Raipur and Raigarh Ultra Super Power Projects".

In the scope of the contracts, EPC engineering water and environmental management systems shall be provided for process and utility needs. As of the filing, the projects are set to be completed within 18 months after contract award.

Ion Exchange had already bagged an international contract worth ₹250.65 crore (VAT and other taxes not included) earlier in April for a North Africa undertaking. The contract will comprise of engineering, manufacturing, delivering, supervising, and commissioning a desalination water unit, which shall be carried out within seven months after the sanction of engineering, according to an intimation given to the stock exchange on April 2.

Three core business segments constitute the foundation of Ion Exchange's operations: Engineering, Chemicals, and Consumer Products.

In Q1FY25, the Engineering segment accounted for 58% of the company's revenues while increasing by 13% YoY; its Ebit registered a remarkable growth of 26% YoY, spearheaded by mid-sized orders and international projects.

Revenue from Chemicals was 30% and up on a Y-o-Y basis by 36% to both revenue and Ebit. Consumer Products earns sales from individual as well as institution customers and its revenue was up a mere 9%, but posted an Ebit loss of ₹3.4 crore.

Geographically, 78% of Ion Exchange's revenue is drawn from the domestic market and 22% in exports to countries such as Africa, Japan, and Europe. Over 36 sales and service centers and more than 100 channel partners sustain the international presence for the company.

Ion Exchange is the leader in the management of water offerings in the complete water cycle-from pre-treatment and process water treatment to wastewater management, recycling, zero liquid discharge, sewage treatment, packaged drinking water, and seawater desalination. 

With more than 100,000 installations in over 70 countries around the globe, the company reaches the most diversified client base across industries, institutions, households, and communities, making it the pioneer in water and wastewater treatment and environmental management solutions.