(Delhi)In a significant move for its shareholders, Agarwal Industrial Corporation, a leading player in India's bitumen and infrastructure sector, has announced a series of corporate actions including a stock split and dividend declaration. This comes as the company has seen an impressive rise in its stock price over the past four years, positioning itself as one of the standout performers in the small-cap segment.
Agarwal Industrial Corporation has declared a stock split in a 1:5 ratio. This means that each existing share with a face value of ₹10 will be subdivided into five shares with a face value of ₹2 each. This decision, approved by the Board of Directors, is set to make the stock more accessible to a broader range of investors and potentially enhance liquidity. The company stated, “The Board considered and approved splitting/sub-division of the Equity Shares of the Company of nominal value of ₹10 each fully paid up into ₹2 each fully paid up by the provisions of the Companies Act 2013 and Rules made thereunder and SEBI (LODR) Regulations 2015 as amended, and alteration of MOA and AOA accordingly, subject to the consent/approval of the Members of the Company.”
Additionally, Agarwal Industrial Corporation will trade ex-dividend on September 6, 2024. Shareholders on record will receive a final dividend of ₹3 per share for the financial year 2023-24.
or the first quarter of FY25, Agarwal Industrial Corporation reported robust financial performance. The company achieved a consolidated revenue of ₹709.24 crore, reflecting a year-on-year increase of 12.69%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 46.53% to ₹61.71 crore. Profit after tax (PAT) also saw a substantial growth of 41.44%, reaching ₹39.00 crore.
The company's volume growth was impressive, with a 26.60% increase and the highest-ever first-quarter volume of 170,478.36 metric tons (MT). This growth is indicative of the strong demand for its products and services, which include bulk bitumen and LPG logistics, serving as an essential infrastructure ancillary in the transport and logistics sectors.
Agarwal Industrial Corporation operates in a critical segment of India’s infrastructure sector, which has been bolstered by recent government spending. The Union Budget 2023-24 proposed a substantial total expenditure of ₹45,03,097 crore, with a significant allocation of ₹2,72,000 crore for the Ministry of Road Transport and Highways. This increased funding is expected to drive further growth and opportunities in infrastructure development, benefiting companies like Agarwal Industrial Corporation that are integral to this sector.
With seven manufacturing facilities, a diverse portfolio of over 20 products, and a fleet of 10 vessels with a capacity of around 1,02,049 MT, Agarwal Industrial Corporation is well-positioned to capitalize on the expanding infrastructure landscape in India.
As the company prepares for its stock split and dividend distribution, investors will be keenly watching how these moves impact the stock’s liquidity and overall market performance. The company’s continued strong financial results and strategic position within the infrastructure sector suggest a promising future trajectory.
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