Banco Products declares 400% dividend, PAT up 474% in Q3, scrip rallies up by 9%

With a market worth of ₹1,673.54 Cr, Banco Products India Ltd. is a small-cap company that operates in the consumer discretionary industry. In the field of engine cooling and sealing systems for both industrial and automotive applications, the firm is a pioneer. Following today's announcement of the company's Q3 earnings and a 400% dividend for its eligible shareholders, the stock closed on the NSE with an upside gap of 9%.

The company has said in a stock exchange filing that “The Board of Directors has declared an Interim Dividend of Rs.8 /- ( 400 %) per Equity Share of ₹2.00. each for the financial year ending 31st March, 2023. The Company has fixed 25 February , 2023, as the record date for the purpose of payment of Interim Dividend. The Interim Dividend declared will be paid on or after 9th March, 2023.”

On a consolidated basis, the net profit of Banco Products (India) grew by 474.44% YoY to ₹98.23 crore in the quarter ended December 2022 as against ₹17.10 crore during the quarter ended December 2021. The company posted net sales of ₹501.69 crore in Q3FY23 compared to ₹392.63 Cr in Q3FY22, representing a YoY growth of 27.78%. The company recorded net expenses of ₹384.48 crore against ₹371.47 Cr in the year-ago quarter. The EPS of Banco Products India reached ₹13.73 on a consolidated basis in Q3FY23 compared to ₹2.39 in Q3FY22.

On a standalone basis, the company’s net sales reached ₹231.46 crore in Q3FY23 compared to ₹183.96 Cr in Q3FY22, representing a YoY growth of 25.82%. The company recorded a net profit of ₹33.02 Cr in the quarter ended December 2022 against ₹15.01 Cr in the year-ago quarter, representing a YoY growth of 119.98%. EPS of Banco Products stood at ₹4.62 in Q3FY23 compared to ₹2.10 in the year-ago quarter.

The shares of Banco Products closed today on the NSE at ₹235.25 apiece, up by 9.27% from the previous close of ₹215.30.