30 May , 2024 By : Debdeep Gupta
Shares of ISGEC Heavy Engineering nosedived over 11 percent on May 30, a day after the company reported disappointing earnings for the quarter ended March 2024.
Its net profit fell 17.2 percent year-on-year to Rs 71.30 crore and sales declined 8.5 percent to Rs 1,867.96 crore during the quarter under review.
The company's board also recommended a dividend of Rs 4 per equity share of Re 1 face value for FY24. The dividend recommended is subject to the approval of the shareholders at the forthcoming Annual General Meeting (AGM).
If approved by the shareholders, the dividend will be paid on or before September 25, 2024, i.e., within 30 days from the date of declaration at the AGM, informed ISGEC in a regulatory filing.
Separately, the company's Board of Directors approved the re-appointment of Rashi Sikka as an Independent Director on the board to hold office for a second term of five consecutive years with effect from May 28, 2025, subject to the approval of the shareholders by way of passing Special Resolution in this regard.
ISGEC Heavy Engineering is a multi-product, multi-location public company that has been supplying a diversified range of industrial solutions that cover products, projects, and services to customers spread across as many as 91 countries for the past 90 years. Its offerings cut across a wide spectrum of critical sectors.
For the full year (FY24), ISGEC's net profit rose 24.01 percent to Rs 243.67 crore in the year ended March 2024 as against Rs 196.49 crore during the previous year fiscal. Its sales, however, declined 2.81 percent to Rs 6,219.34 crore as against Rs 6,399.04 crore during the previous fiscal ended March 2023.
At 10:53 am, ISGEC Heavy Engineering shares were trading over 11.8 percent lower at Rs 1,034.95 on the National Stock Exchange (NSE). So far this year, the stock has risen over 4 percent, marginally beating Nifty's returns of 3.8 percent during this period. In the last 12 months, the stock has seen a stellar rally of 75 percent.
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