Power Mech board approves 1:1 bonus share issue, shares rally 15%

The board has approved September 28, 2024 as the record date to determine the eligibility of beneficial owners who are entitled to receive the bonus shares. The company said that the bonus equity shares will be issued out of the securities premium account available based on audited financial statements of the company as on March 31, 2024.

The balance in free reserves and securities premium account as on March 31, 2024 stands at ₹1,791.27 crore. The company said the bonus shares are expected to be credited into the shareholders’ account within two months from the date of approval of board i.e on or before October 21, 2024.

Meanwhile, during the first quarter of fiscal year 2024, revenue from operations rose 16% year-over-year (YoY) to ₹1,007.40 crore. Total revenue rose 17% YoY to ₹1,016.60 crore during the quarter.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 17% YoY to ₹122.80 crore while EBITDA margin increased by nine basis points to 12.10%. Net profit rose 21% YoY to ₹60.1 crore while profit margin remained flat at 5.9%.

Recently, the company received an order worth ₹114.30 crore for the extension of operation and maintenance of 1,200 MW (2*600MW) coal based Mutiara Thermal Power Plant, owned by Coastal Energen located in Tuticorin District, Tamilnadu for a period of one year with effect from October 1, 2024.

Earlier this month, the firm received an order worth ₹110.57 crore for the operation and maintenance of 400 MW captive power plant and utilities of Petroleum Oil Refinery in Dangote, Nigeria.

Shares of the firm have gained nearly 49% since the beginning of the year. The stock has risen over 66% in the last one year.