Power Mech announced on Thursday that its board has chosen to issue bonus shares at a 1:1 ratio, meaning that each shareholder who currently owns one share will also receive one additional share of the company. Friday saw a 16.6 per cent increase in the company's share price after the announcement.
The stock touched a day-high price of Rs 7450.00 per share on the national stock exchange. Recording a 16.6 per cent move from previous closing of Rs 6386.35 per share on stock exchange.
Record date
The record date for determining the eligibility of beneficial owners who are qualified to receive bonus shares is September 28, 2024, as approved by the board.
According to the company, bonus equity shares will be distributed from the securities premium account, which is based on the company's audited financial statements as of March 31, 2024.
As of March 31, 2024, the total amount in the free reserves and securities premium account is Rs 1,791.27 crore. According to the company, the bonus shares should be credited into the shareholders' accounts on or before October 21, 2024, or within two months of the board's approval date.
Order pipeline
The company recently received an order for Rs 114.30 crore to extend the operation and maintenance of the Coastal Energen-owned 1,200 MW (2*600 MW) coal-based Mutiara Thermal Power Plant in Tuticorin District, Tamil Nadu, for a year, starting on October 1, 2024.
The company was awarded a Rs 110.57 crore order earlier this month to operate and maintain the 400 MW captive power plant and utilities of the Petroleum Oil Refinery in Dangote, Nigeria.
Powermech projects Q1 FY25
Meanwhile, operating revenue reached Rs 1,007.40 crore in the first quarter of fiscal year 2024, up 16 per cent YoY. During the quarter, total revenue increased 17 per cent YoY to Rs 1,016.60 crore.
As the EBITDA margin increased by nine basis points to 12.10 per cent, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 17 per cent year over year to Rs 122.80 crore. Profit margin stayed unchanged at 5.9 per cent despite a 21 per cent YoY increase in net profit to Rs 60.1 crore.
