Bonus to be Announced Soon: Power Mech Projects Jumps 6%

Introduction to Power Mech Projects Ltd (PMPL)

Incorporated in 1999, Power Mech Projects Ltd (PMPL), based in Hyderabad, is a leading engineering and construction services provider with a primary focus on the power and infrastructure sectors. Over the years, PMPL has diversified its operations across a broad spectrum of industries, including Railways, Transmission & Distribution (Electrical), Flue-Gas Desulfurization (FGD), Mining, Steel and Process Industry, Refinery, Hydro projects, Manufacturing, Cross Country Pipe Laying civil works, and operations & maintenance of power plants, among others.

Diverse Project Portfolio and Clientele

PMPL has established a strong presence across India, executing significant projects for esteemed clients such as Bharat Heavy Electricals Limited (BHEL), NTPC Limited, independent power producers (IPPs), and various state generation utilities. The company’s expertise is not confined to Indian borders; it has expanded its footprint into international markets, with a presence in the Middle East, South Asia, and Africa through its subsidiaries and joint ventures.

Stock Performance and Market Reaction

Shares of Power Mech Projects surged by approximately 6% on Wednesday following the company’s announcement that it would consider a bonus issue of shares during its upcoming board meeting on August 22. This marks a significant milestone for PMPL, as it would be the first time the company has issued bonus shares to its shareholders. Historically, PMPL has not split its stock but has consistently paid dividends to its shareholders.

The record date for this potential bonus issue is yet to be determined, creating anticipation among investors.

Financial Performance: June Quarter Highlights

Earlier this week, Power Mech Projects reported its financial results for the June quarter, showcasing strong growth. The company’s net profit surged by 21% year-on-year, while its revenue increased by 16.4%. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 14.4%, reaching Rs 113.6 crore. Despite this growth, EBITDA margins remained relatively stable at 11.3%, compared to 11.5% in the previous year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.