Mukand Ltd. , a leading specialty steel manufacturer, has reported a significant increase in profit for the first quarter, despite a slight decline in revenue compared to the previous quarter.

Financial Highlights

Standalone Performance

• Profit: Mukand's standalone profit after tax for the quarter rose to ₹35.47 crore, up from ₹27.47 crore in the previous quarter, marking a substantial 29.12% increase.
• Revenue: The company's standalone revenue from operations slightly decreased to ₹1,102.39 crore from ₹1,058.99 crore in the previous quarter.

Consolidated Performance

• Profit: The consolidated profit after tax increased to ₹29.03 crore from ₹10.90 crore in the previous quarter, representing a 166.33% jump.
• Revenue: Consolidated revenue from operations stood at ₹1,128.71 crore, up from ₹1,106.89 crore.

Strategic Developments

Land Sale Agreement

Mukand executed a land sale agreement for approximately ₹673.00 crore. The company has already received an advance of ₹110.00 crore from this transaction.

Business Restructuring

The board has approved the transfer of part of its Industrial Machinery Division to its wholly-owned subsidiary, Mukand Heavy Engineering Limited, through a slump sale arrangement.

Outlook

The substantial increase in both standalone and consolidated profits indicates that Mukand's strategic initiatives and operational efficiencies are yielding positive results. The land sale agreement and the restructuring of the Industrial Machinery Division suggest that the company is actively managing its assets and streamlining its operations.

The company's ability to maintain its revenue in a challenging economic environment is noteworthy. As Mukand continues to implement its strategic plans, investors and stakeholders will be watching closely to see how these moves translate into long-term value creation.

Mukand Limited , a prominent industrial company, has made a significant move in the real estate market by signing an agreement to sell approximately 17.77 acres of land in Kalwe and Dighe, Thane district. The deal, valued at Rs. 673.00 crore, marks a strategic step for the company to unlock value from its land assets without impacting its core operations.

Deal Specifics

The agreement, executed on July 23, involves the sale of land parcels at a rate of Rs. 86,980.00 per square meter. The buyer, AGP DC INFRA PRIVATE LIMITED, has already provided an advance payment of Rs. 110.00 crore to Mukand Limited. The transaction includes:

• Approximately 17.77 acres (71,903.83 square meters) of land in Villages Kalwe and Dighe
• 50% undivided right, title, and interest in an access road measuring about 2.73 acres (11,057.00 square meters)
• A perpetual non-exclusive right of way over a 0.16-acre (639.35 square meters) land parcel

Conditions and Approvals

The sale is subject to several conditions:

1. Necessary approvals and permissions from the Government of Maharashtra
2. Clearances from the Thane Collector and Gram Panchayat
3. Completion of due diligence by the purchaser

Mukand Limited expects the sale to be completed within 30 days of satisfying all conditions precedent, provided the buyer is satisfied with the due diligence outcomes.

Financial Implications

The company has stated that this land sale will not impact its operations and does not constitute a disposal of substantially the whole undertaking. This move appears to be part of Mukand's strategy to optimize its asset portfolio and potentially strengthen its financial position.

Transaction Nature

It's worth noting that this is a non-related party transaction, as AGP DC INFRA PRIVATE LIMITED is not associated with Mukand's promoter or promoter group. This fact underscores the arm's length nature of the deal and its alignment with market values.

Conclusion

This significant land sale agreement demonstrates Mukand Limited's proactive approach to asset management and value creation. As the transaction progresses through the necessary approvals and due diligence processes, it will be interesting to see how the company utilizes the proceeds to further its business objectives and enhance shareholder value.