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Paper and pulp manufacturers Andhra Paper shares dropped 4.33 per cent to hit an intraday low of Rs 502.05 per share on the BSE on Wednesday. The fall came a day after the company announced its March quarter results for FY24 (Q4FY24), along with stock-split and dividend announcement.
Andhra Paper on Tuesday announced that the company will split one equity share into five shares. "The Board of Directors in their meeting held on May 14, 2024, has approved a proposal for sub-division/split of each of one fully paid up equity share having face value of Rs 10 each into 5 fully paid up equity shares, having face value of Rs 2 (each)," the company said in its filing.
The company said it has decided to split the stock to facilitate a larger shareholder base, boost liquidity in the capital market, and to make the shares more affordable to small retail investors.
Meanwhile, the company announced a weak set of Q4 results.
Andhra Paper's profit in the March quarter of FY24 dropped a little over 75 per cent to Rs 38.4 crore, from Rs 154 crore in the same quarter a year ago (Q4FY23).
The company’s topline dropped 38.3 per cent on a year-on-year basis to Rs 364.4 crore in Q4FY24, as opposed to Rs 590.2 crore in the same quarter last year.
Andhra Paper’s earnings before interest, tax and depreciation dropped a whopping 84.6 per cent to Rs 35.3 crore, from Rs 228.6 crore a year ago. Its margin, meanwhile, squeezed 2,900 basis points (bps) to 9.7 per cent in Q4FY24, from 38.7 per cent in Q4FY23.
The board of Andhra Paper has proposed a dividend of Rs 10 per share, with a face value of Rs 10 each.
Separately, Andhra Paper also announced the re-appointment of Mukesh Jain as executive director of the company for a period of 3 years, subject to the approval of members.
Set up in 1964, Andhra Paper Limited is a paper and pulp manufacturer. The company specialises in the manufacturing of writing, printing, and copier papers, catering to both domestic and international markets. Its cutting-edge production facilities located in Rajahmundry and Kadiyam boast a combined production capacity of 240,000 metric tons per annum.
The 52-week high of the stock is Rs 675.00 while its 52-week low is Rs 392.45 per share. The market capitalisation of Andhra Paper is Rs 2,025.09 crore, according to Bombay Stock Exchange.
At 10:39 AM, Andhra Paper stock was trading 3.23 per cent lower at Rs 507.85 per share. By comparison, S&P BSE Sensex was down 0.33 per cent at 72,866.34 levels.
