Vikas Ecotech, a premium specialty chemicals company, has declared its financial results for the January-March quarter of FY23. The company reported a surprising increase in its net profit during the reporting financial year, driven by higher sales and debt reduction.
According to the exchange, the company’s net profit grew by 584 per cent to Rs 9.52 crore in FY23. In FY22, the same was Rs 1.39 crore.
Highlights of the quarter include the rights issue. The company announced that it plans to raise Rs 100 crore by issuing equity shares and other convertible securities, warrants, bonds, FPOs.
For the quarter ended March 31, 2023, the Delhi-based company posted a net profit of Rs 1.78 crore, down from Rs 2.8 crore posted in the previous quarter (October-December). The net profit of the company came at Rs 1.22 crore in the March quarter of the last financial year.
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Total income in the January-March period declined to Rs 69.6 crore from Rs 112 crore during the December quarter. In Q4FY22, the total income was Rs 82 crore.
It reduced the expenses in Q4FY23 by 67.26 per cent from Rs 81.45 crore in the same period last fiscal. The expenditure in the December quarter of FY23 was Rs 109 crore. Revenue from operations stood at Rs 68.3 crore as against Rs 111.3 crore in Q3 and Rs 83 crore in Q4 FY22.
Earlier this month, the company cut its debt as part of its debt reduction plan and paid Rs 5.22 crore to lenders. Its total bank-loan has now come down to Rs 908.70 million. The repayment is a part of the company’s strategic plan to become 100 per cent debt free by the end of FY24.
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In another related development, the company has announced its foray into green-enviro-friendly infra projects by joining hands with Nice Apartment Constructions, a part of Unity Group.
Vikas Ecotech shares have given multibagger returns of 118 per cent in two years, resulting in wealth creation for the shareholders.