Penny Stock Below Rs 5 Reports 28% Jump In Q4 Net Profit: Do You Own?

Penny stock below Rs 5 Vikas Ecotech is in focus after the company declared financial results for the quarter and year ended 31st March 2024. The company's revenue from operations on a stand-alone basis dropped 12.63% from Rs. 68.33 crore in the March 2023 quarter to Rs. 59.70 crore in the March 2024 quarter. Its Q4FY24 quarterly standalone net profit was Rs. 2.06 crore, up 15.47% from Q4FY23's Rs. 1.79 crore. EBITDAdropped 22.87% from Rs. 6.34 crore in the same quarter last year to Rs. 4.89 crore in the quarter under review.

In the quarter that ended in March 2024, Vikas Ecotech's net profit climbed by 28.49% to Rs 2.30 crore on a consolidated basis, compared to Rs 1.79 crore in the quarter that ended in March 2023. Compared to Q4FY23, which had consolidated quarterly sales of Rs 68.33 crore, Q4FY24 saw a 4.98% growth to Rs 71.73 crore. Consolidated net profit for the entire year dropped by 28.12% to Rs 6.85 crore in the year that ended in March 2024 from Rs 9.53 crore in the year that ended in March 2023. Comparing FY24 to FY23, consolidated sales decreased 35.77% to Rs 258.63 crore from Rs 402.67 crore.

During FY24, the company has raised funds of Rs. 13,398 Lakh through Qualified Institutional Placements (QIP) in 2 tranches. In the first tranche, it issued 17,85,00,000 shares having paid-up value of Rs. 1/- & a share premium of Rs. 1.80 per share, total issue size is Rs. 4998 Lakh & in the second tranche, the company issued 16,12,80,000 shares having paid value Rs. 1/- & security premium of Rs. 2.10, total issue size is Rs. 4,999.68 Lakh. Further, Vikas Ecotech has issued 10,00,00,000 shares on preferential basis to the promoters i.e. Mr. Vikas Garg at a share price of Rs. 3.40 per share having paid-up value of Rs. 1/- & security premium of Rs. 2.40 per share aggregating to Rs 3400 Lakh.

Due to expenses associated with an increase in capital through the Further Public Offer, the firm capitalised expenditures totalling Rs 230.23 Lakh during the fiscal year. The firm ended the quarter and year on March 31, 2024, acquiring 100% of the shares in M/s Vikas Organics Pvt Ltd, a company that manufactures polymeric plasticizers.

During the afternoon session on BSE, the shares of Vikas Ecotech were trading at Rs 3.86 apiece on Thursday with a market cap of Rs 537.29 Cr while writing the copy.