Shares of Foseco India rallied 9 per cent to hit an over five-year high of Rs 2,189 on the BSE in Tuesday’s intra-day trade after the company reported a 51 per cent jump in its net profit to Rs 1,226 crore in the December quarter (Q4CY22). The stock of the specialty chemicals company was quoting at its highest level since January 2018.
The company, which follows January-December cycle for the financial year, reported 21 per cent growth in revenue from operations at Rs 105.70 crore against Rs 87.46 crore in Q4CY21.
Earnings before interest, taxes, depreciation, and amortization (ebitda) grew 54.6 per cent to Rs 18.06 crore. Ebitda margin improved 373 bps to 17.08 per cent against 13.35 per cent in the year ago quarter.
FIH Men's Hockey World Cup 2023: Obstacles India will face on its home turf
One year since Tatas took over Air India, here's how the journey has been
Dec quarter net up 65%, Nestle announces final dividend of Rs 75 per share
Union Budget 2023: Experts don't expect surprises in social sector outlay
Budget 2023: A look back at some major announcements in previous Budget
Zee Entertainment jumps 6% as NSE reincludes stock in F&O segment
MARKET LIVE: Sensex, Nifty flat; Auto stocks in fast lane, Metals slide
Stocks to watch: SpiceJet, Bharti Airtel, SAIL, Wipro, Brigade Ent, Mastek
Retail and MSME asset buying to drive ARC business in FY24: India Ratings
Sensex, Nifty close in red for 7th straight session on weak global trends
Meanwhile, its board recommended a final dividend of Rs 25 (250 per cent) on paid-up equity shares of Rs 10 each for the financial year ended December 31, 2022, plus a one-time special dividend of Rs 15 (150 per cent) giving a total final dividend of Rs 40 (400 per cent) per share.
The one-time special dividend is recommended on completion of 65 years of thecCompany in the current year 2023, Foseco India said.
In the past one year, the stock price of the company has zoomed 65 per cent as compared to a 5.4 per cent rise in the S&P BSE Sensex.
Foseco India is engaged in the manufacturing of products used in the metallurgical industry. The products are in the nature of additives and consumables that improve the physical properties and performance of castings. The manufacturing activities are at Sanaswadi and Puducherry.
India continues to be the second-largest casting producer in the world behind China. The Indian foundry industry manufactures metal cast components for applications in Auto, Tractor, Railways, Machine tools, Pipes Defence, Aerospace, Construction, Mining, Textile, Cement, Electrical, Power Machinery, Pumps/Valves, Wind turbine generators etc.
The government is expected to continue increasing its investment in improving the railways and building other essential infrastructure, creating an increased demand for construction, mining, and general engineering goods.
"As part of the Atmanirbhar Bharat Abhiyaan, the government has provided new definition to MSME thus covering almost 99 per cent of all business entities enabling MSMEs to grow in size and create jobs. More and more foundries have started enjoying the benefits provided to MSMEs and their expansion and investment in technology could help Foseco partner with them", Foseco India said in its December 2021 annual report.