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Power Mech Stock Soars by 15% after 1:1 Bonus Share Announcement

Power Mech will issue bonus shares in a 1:1 ratio, boosting its stock by over 15%. The company reported strong financial growth and secured major orders in recent months.
Power Mech Stock Soars by 15% after 1:1 Bonus Share Announcement

Power Mech has announced that its board will issue bonus shares in a 1:1 ratio, meaning shareholders will receive one additional share for every share they currently hold. Following this news, the company’s shares jumped more than 15% on Friday. The board set September 28, 2024, as the record date to determine which shareholders will receive the bonus shares.

The bonus shares will come from the securities premium account, based on the company’s audited financials as of March 31, 2024. The free reserves and securities premium account balance was ₹1,791.27 crore as of that date. Shareholders can expect to see the bonus shares in their accounts by October 21, 2024, or sooner.

In the first quarter of fiscal year 2024, Power Mech saw a 16% year-over-year increase in revenue from operations, reaching ₹1,007.40 crore. Total revenue for the quarter also rose 17% year-over-year to ₹1,016.60 crore.

The company’s EBITDA grew 17% year-over-year to ₹122.80 crore, with an EBITDA margin slightly up to 12.10%. Net profit increased by 21% year-over-year to ₹60.1 crore, with the profit margin holding steady at 5.9%.

Recently, Power Mech secured a ₹114.30 crore order for maintaining the Mutiara Thermal Power Plant in Tamil Nadu and a ₹110.57 crore order for the Dangote refinery in Nigeria. The company’s shares have surged nearly 49% this year and over 66% in the past year.

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