Garware Technical, a leading textile products company, saw its stock price soar by 16% after posting a robust Q2 FY24 performance and announcing a bonus issue.
In the September quarter, the company reported a 26% year-on-year growth in consolidated net profit, reaching Rs 66 crore, up from Rs 52 crore in Q2 FY23.
Revenue from operations surged by 28.1%, totaling Rs 421 crore, compared to Rs 328 crore in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 91 crore, a 31.9% increase from Rs 69 crore last year. EBITDA margins improved slightly to 21.7% from 20.9% in Q2 FY23.
In addition to strong financial results, Garware’s board approved a bonus issue of 7,94,12,676 shares of Rs 10 each.
The bonus issue ratio is set at 4:1, meaning there will be four new fully paid-up equity shares of Rs 10 for every existing fully paid-up equity share of Rs 10.
According to the filing, the pre-bonus issue paid-up equity share capital is Rs 19,85,31,6901, which consists of 1,98,53,169 fully paid-up equity shares of Rs 10 each.
The post-bonus issue paid-up equity share capital is at Rs 99,26,58,4501, with 9,92,65,845 fully paid-up equity shares of Rs 10 each.
As of 12:40 pm, Garware Technical shares were trading 16.88% higher at Rs 4,619.00 on the NSE.
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