ONGC-backed chemical stock logs 200% YoY jump in net profit in Q2. Shares jump
Stock market today: Oil and Natural Gas Corporation (ONGC)-backed chemical company Vikas Lifecare Ltd has declared its Q2 results 2023. The super specialty chemical manufacturer has reported near 200 per cent rise in its net profit to ₹7.17 crore in Q2FY24 results. Company’s total income in second quarter of the current financial year stood at ₹110.60 crore, which was at ₹106.30 crore in April to June 2023 quarter. This means, the ONGC-backed chemical company has managed to improve its income in recently ended September 2023 quarter on quarter-on-quarter (QoQ)-basis.
After announcement of Q2 results 2023, Vikas Lifecare share price today opened flat but soon caught attention of Dalal Street bulls. The small-cap stock is currently quoting ₹5 apiece on NSE, near 2 per cent higher from its Wednesday close.
Vikas Lifecare resutls
The chemical company went on to report that its comprehensive income stood at ₹8 crore during September 2023 quarter whereas its total comprehensive income was at ₹2.83 crore in the corresponding quarter in previous financial year. This means the chemical company has logged 182 per cent YoY rise in its comprehensive income.
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Company’s revenue from operations improved on QoQ basis as well. In July to September 2023 quarter, company’s revenue from operations stood at ₹103.86 crore, whereas its revenue from operations in previous quarter in current fiscal stood at ₹94.79 crore. This means, Vikas Lifecare’s revenue from operations grew 9.57 per cent on QoQ basis.
For the first six-month period of the current financial year, Vikas Lifecare Ltd posted a net profit of ₹19.35 crore as against a net profit of ₹5.19 crore that it had reported in the six-month period ended September 30, 2022.
Total income of the chemical company during the H-1FY24 came in at ₹233.25 crore. It had clocked a total income of ₹227.34 crore in the same period of FY23.
Vikas Lifecare is a del-credere agent of the country’s largest crude oil and natural gas producer ONGC which contributes around 71 per cent to the total domestic production. The Delhi-based firm is mainly engaged in trading and manufacturing of polymer, rubber compounds and additives for plastics, synthetic and natural rubber.
Vikas Lifecare news
The chemical stock aims to raise ₹97 crore via issuance of warrant on preferential basis. The small-cap company has already informed Indian exchanges about the same.
Under the proposal, Vikas Lifecare Ltd aims to raise up to ₹97 crore via issuance of 24.25 crore fully convertible warrants at an issue price of ₹4 each. The amount raised will be utilised towards working capital and for supporting the expansion plan.
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Updated: 19 Oct 2023, 02:33 PM IST
