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PG Electroplast soars 11%, hits record high on solid Q4, 1:10 stock split

PGEL forecasts revenues of Rs 3,400 crore, a growth of 23.8 per cent over FY24 consolidated revenues, despite the transfer of the TV business to Goodworth Electronics

Stock market, Indian market

Photo: Bloomberg

Tanmay Tiwary New Delhi

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PG Electroplast hits all time high: Shares of PG Electroplast (PGEL), on Thursday, zoomed as much as 10.90 per cent to hit an all time high of Rs 2,639.80 per share on BSE.

The rise came on the back of strong March quarter (Q4FY24) financial performance by the company. PG Electroplast’s net profit climbed over 73 per cent to Rs 69.6 crore in Q4FY24, from Rs 40.2 crore in Q4FY23.

The mould manufacturing company’s topline grew 30 per cent to Rs 1,076.6 crore in the March quarter of FY24, from Rs 828.2 crore in the March quarter of FY23.

At the operating level, earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, zoomed 54 per cent to Rs 116.7 crore in Q4FY24, from Rs 75.8 crore in the same quarter previous fiscal.
 

Ebitda margin, meanwhile, expanded 160 basis points (bps) to 10.8 per cent in the March quarter of financial year 2024, from 9.2 per cent in the March quarter of financial year 2023.

“FY2024 has been another remarkable year in the growth journey of PGEL. The company has been able to strengthen its balance sheet, successfully expanded its capacities in RAC business and formed new partnerships for Electronic and IT hardware business. All existing business lines have high visibility of strong growth rates, while several new promising opportunities are at the doorstep of the company. We believe that our new initiatives along with focused product strategy will open a new growth horizon for the company in near future," said Anurag Gupta, chairman of PG Electroplast.

The Board of Directors have approved a stock split at a ratio of 1:10, meaning every Rs 10 paid-up share will be subdivided into 10 shares of Rs 1 each.

Additionally, the Board has approved a final dividend of Rs 0.20 for each split share with a face value of Rs 1.

FY25 Guidance

PGEL forecasts revenues of Rs 3,400 crore, a growth of 23.8 per cent over FY24 consolidated revenues, despite the transfer of the TV business to Goodworth Electronics. 

Net profit guidance stands at Rs 200 crore, reflecting a 46 per cent jump over FY24's net profit of Rs 137 crore.

Goodworth Electronics is expected to achieve revenues of Rs 600 crore in FY25, contributing to the Group's total revenues of Rs 4,000 crore.

The product business, encompassing Washing Machines, Room Air Conditioners, and Air Coolers, anticipates a growth of approximately 44 per cent to Rs 2,400 crore from Rs 1,668 crore in FY24.

FY25's capital expenditure is projected to range between Rs 370-380 crore. The company plans to invest in two new greenfield facilities in North India and further expand its Supa facilities.

PG Electroplast Ltd is an electronic manufacturing services (EMS) provider for original equipment manufacturers (OEMs) of consumer electronic products. The company manufactures and/or assembles a comprehensive range of consumer electronic components and finished products such as colour television sets & components air conditioners sub-assemblies DVD players, water purifiers and CFL, for third parties. 

At 1:06 PM, shares of PG Electroplast were trading 6.11 per cent higher at Rs 2,525.55 per share. By comparison, S&P BSE Sensex soared 1.04 per cent at 74,992.64 levels.

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First Published: May 23 2024 | 1:17 PM IST

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