Minda Industries soars 10% on 2:1 bonus issue; strong Q4 results

The stock soared 10% to Rs 1,223 on the BSE after the company reported a consolidated net profit at Rs 1.35 billion in March quarter against Rs 560 million in year ago quarter

Minda Industries soared 10% to Rs 1,223 on the BSE after the auto ancillary company said its board recommended bonus shares in the ratio of 2:1.

“The board of directors at their meeting held on Tuesday i.e. 22 May, 2018 has recommended the issue of bonus shares to the shareholders of the company in the ratio of 2 bonus equity shares of Rs 2 each fully paid up for every 1 existing equity share of Rs 2 each fully paid up (in the ratio of 2:1) held by the shareholders as on the record date to be fixed separately,” Minda Industries said in a BSE filing.

The board also recommended a final dividend of Rs 1.60 per equity share of Rs 2 each i.e. 80% to the equity shareholders for the year ended on 31 March, 2018.

Minda Industries has reported a more than doubled its consolidated net profit at Rs 1.35 billion for the quarter ended March 2018 (Q4FY18). It had profit of Rs 560 million in the same quarter year ago.

Consolidated revenue during the quarter under review grew 52.9% at Rs 13.71 billion against Rs 8.97 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 67bps to 12.4% from 11.7% in year ago quarter.

The trading volumes on the counter more than doubled with a combined 353,826 shares changed hands on the BSE and NSE so far.