Neelamalai Agro Industries Reports Mixed Q2 Results with Dividend Income Boost
Neelamalai Agro Industries Limited announced Q2 and H1 FY results. Q2 revenue decreased to Rs 496.56 lakhs from Rs 664.30 lakhs year-over-year. Net profit fell to Rs 369.27 lakhs from Rs 563.41 lakhs. H1 revenue slightly increased to Rs 1,292.50 lakhs. Other income boosted by Rs 401.15 lakhs dividend from associates and joint ventures. EPS dropped to Rs 17.30 from Rs 90.34. Company declared Rs 30 per share final dividend. Total assets rose to Rs 8,367.61 lakhs, with total equity at Rs 7,265.09 lakhs.
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Neelamalai Agro Industries Limited , a prominent player in the plantation sector, has announced its financial results for the second quarter and first half of the fiscal year, revealing a mixed performance with notable changes in revenue and profitability.
Revenue and Profitability
The company reported a standalone revenue from operations of Rs 496.56 lakhs for Q2, marking a decrease from Rs 664.30 lakhs in the corresponding quarter of the previous year. Despite the revenue decline, Neelamalai Agro Industries saw a significant boost in other income, which included substantial dividend income from associates and joint ventures amounting to Rs 401.15 lakhs for the half-year period.
Net profit after tax stood at Rs 369.27 lakhs for Q2, compared to Rs 563.41 lakhs in the same quarter of the previous year. This represents a year-on-year decrease in profitability, which may be attributed to various factors including changes in operational costs and market conditions.
Half-Year Performance
For the first half of the fiscal year, Neelamalai Agro Industries recorded a revenue of Rs 1,292.50 lakhs, showing a slight increase from Rs 1,282.23 lakhs in the previous corresponding period. This marginal growth suggests stability in the company's core operations despite challenging market conditions.
Earnings Per Share and Dividend
The basic earnings per share (EPS) for Q2 was reported at Rs 17.30, a significant decrease from Rs 90.34 in the same quarter of the previous year. This reduction in EPS aligns with the lower net profit reported for the quarter.
In a positive development for shareholders, the company declared a final dividend of Rs 30 per equity share for the year ended March 31, which has been paid out.
Financial Position
As of September 30, Neelamalai Agro Industries maintains a strong balance sheet with total assets of Rs 8,367.61 lakhs, up from Rs 7,944.66 lakhs at the end of the previous fiscal year. The company's equity position remains robust, with total equity standing at Rs 7,265.09 lakhs.
Cash Flow and Investments
The company's cash flow statement reveals strategic movements in its investment activities. Notably, there was a dividend received on investment in associates and joint ventures amounting to Rs 401.15 lakhs, contributing significantly to the company's other income.
Management Approval and Audit Review
The financial results were approved by the Board of Directors at their meeting held on November 13, and have undergone a limited review by the statutory auditors, PKF Sridhar & Santhanam LLP.
Outlook
While the company faces challenges in terms of reduced revenue and profitability compared to the previous year, the stable half-yearly revenue and significant dividend income from its investments indicate a diversified approach to maintaining financial health. The management's decision to pay out a substantial dividend despite the profit decline suggests confidence in the company's long-term prospects and commitment to shareholder returns.
Investors and stakeholders will likely keep a close watch on how Neelamalai Agro Industries navigates the current market conditions and leverages its investments to drive growth in the coming quarters.
Historical Stock Returns for Neelamalai Agro Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.66% | -0.44% | -1.19% | -1.06% | -11.55% | +226.86% |
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