HBL Power Systems Surges Nearly 8% on Strong Growth in Q4 Net Profit, Revenue

HBL Power Systems witnessed a significant surge in its share price, rallying nearly 8% on Monday, May 27, following the release of its robust financial results for the quarter ended March 2024. The leading battery manufacturer reported substantial growth in both net profit and revenue, driving investor optimism.

Strong Financial Performance

In its Q4 results, HBL Power Systems reported an impressive 87.55% year-on-year growth in consolidated net profit, reaching ₹65.54 crore compared to ₹34.94 crore in the same quarter a year ago. However, the sequential net profit declined by 16.46% compared to the previous quarter.

For the entire financial year 2023–24, the company recorded a remarkable 170.5% increase in net profit, amounting to ₹262.65 crore, reflecting robust operational performance and growth trajectory.

The company’s total revenue for the March quarter surged by 51.24% year-on-year to ₹616.62 crore, demonstrating strong revenue generation capabilities. Despite a marginal quarter-on-quarter increase, the revenue growth underscores the company’s resilience and market positioning.

Market Reaction and Financial Indicators

Following the announcement of its Q4 results, HBL Power Systems shares soared by 7.85% to reach an intraday high of ₹555 apiece on the BSE. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) witnessed a substantial upswing, reaching ₹131.5 crore, signifying improved operational efficiency and profitability.

Moreover, HBL Power Systems exhibited a noteworthy improvement in its margins, with the margin expanding to 21.6% from 11% in the same period a year ago, reflecting effective cost management and operational optimization.

Dividend Proposal and Executive Appointments

In a strategic move to enhance shareholder value, the company’s Board proposed a dividend of 50% for the financial year 2023-24, equivalent to 0.5 paise per share on the face value of ₹1 each. Additionally, HBL Power Systems announced the appointment of Mikkilineni Satyanarayana Subramanya Srinath as an executive director and Aparna Surabhi as an independent director, effective from May 27, 2024.

Conclusion

HBL Power Systems’ strong financial performance in Q4, coupled with its dividend proposal and executive appointments, has bolstered investor confidence and driven significant market interest. The company’s focus on sustainable growth, operational efficiency, and shareholder returns positions it for continued success in the dynamic market landscape.

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