Kirloskar Industries Q4 Results: Net Profit Surges, Declares 110% Dividend

Kirloskar Industries, a prominent company, witnessed a significant surge in its stock price on May 23, 2023, as it released its financial results for the fourth quarter and announced a generous dividend for the fiscal year 2022-23. The shares of Kirloskar Industries soared by 15 percent, reaching Rs 2,913.70 per share on the BSE exchange.

According to the company’s official filing, the Board of Directors proposed a dividend of Rs 11 (110 percent) per equity share of Rs 10 each for the financial year 2022-2023. However, the dividend is subject to approval by the company’s members at the upcoming Annual General Meeting.

If approved, the dividend will be disbursed either through the National Electronic Clearing System (NECS) or via dividend warrants. The scheduled payment date for the dividend is set for September 11, 2023.

Kirloskar Industries recorded a consolidated net profit of Rs 43.87 crore for the quarter ending in March 2023, showcasing a substantial growth compared to Rs 0.12 crore in the corresponding period of the previous year.

Furthermore, the company’s total revenue from operations for the March 2022 quarter amounted to Rs 1,574.79 crore, indicating a significant increase of 51 percent from Rs 1,037.36 crore. The basic earnings per share (EPS) for the quarter stood at Rs 44.43.

In another development, the company’s Board of Directors granted approval for the conversion of 6,00,00,000 Optionally Convertible Debentures (OCDs) worth Rs 10 each, held by Kirloskar Industries, into 27,24,868 fully paid-up equity shares of Avante Spaces Limited (Avante).

Avante is a wholly-owned subsidiary of Kirloskar Industries. The conversion will be executed at a conversion price of Rs 253.64.

Additionally, the Board allotted 654 equity shares of Rs 10 each following the exercise of Equity Settled Stock Appreciation Rights (ESARs). This action was taken in accordance with the Kirloskar Industries Limited – Employees Stock Appreciation Rights Plan 2019.

Consequently, the paid-up share capital of the company increased from 98,84,565 equity shares of Rs 10 each, aggregating to Rs 9,88,45,650, to 98,85,219 equity shares of Rs 10 each, totaling Rs 9,88,52,190.

As of the time of writing, the stock of Kirloskar Industries was trading at Rs 2,758 on the BSE, exhibiting a notable increase of nearly 9 percent.

In conclusion, Kirloskar Industries witnessed a significant surge in its stock price following the release of its fourth-quarter financial results.

The company’s impressive performance, with a substantial increase in net profit and total revenue, contributed to the positive investor sentiment.

Moreover, the declaration of a 110 percent dividend for the fiscal year 2022-23 further bolstered confidence in the company’s prospects.

Kirloskar Industries’ initiatives, such as the conversion of Optionally Convertible Debentures and the allocation of equity shares through stock appreciation rights, demonstrate its commitment to strategic growth and enhancing shareholder value.

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