Ex-Dividend Date Oct 28: Engineering Stock Sinks 13.18% In 1-Day Post Q2 Results, Tax Update On Dividend

Small cap company from engineering sector, Elecon Engineering Company shares witnessed steep decline of 11% on October 18 and 13.18% fall on October 18 after reporting mixed quarterly results. Last trading price of Elecon Engineering Company shares on BSE is Rs 626.25 per share. It also recommended an interim dividend of Re 0.50/- per share of Re 1/- each with record date fixed as October 28, 2024. It set October 28 as record date for interim divide. The leading industrial gear manufacturer reported its consolidated revenue for Q2 FY25 at Rs 508 crore, up 4.8% YoY as against Rs 485 crore in the corresponding quarter of last year.

The consolidated net profit for Q2 FY25 slipped marginally by 1% to Rs 88 crore as compared to Rs 89 crore reported in the similar quarter of last year. It had recommended a stock split as well in the proportion of 1:2 and fixed July 19, 2024 as the record date. Check details below:

Elecon Engineering Q2 Results: When it comes to the core Gear division, revenue for Q2FY25 stood at Rs. 398 crores as compared to Rs. 423 crores in Q2FY24. Revenue got impacted due to delay in receipt of order from customers resulted in delay in execution within Q2FY25. We anticipate faster execution in balance H2FY25 to achieve the overall guidance for FY25. EBIT for Q2FY25 stood at Rs 82 crores as compared to Rs 110 crores in the corresponding quarter last year. The EBIT Margin for the quarter ended September 2024 stood at 20.5% as compared to 26.0% in the corresponding quarter last year. Revenue for the quarter stood at Rs 110 crores as compared to Rs 62 crores in the corresponding quarter last year, growing 77.8% Y-o-Y.

Elecon Engineering Dividend: According to the BSE filing of Elecon Engineering issued as on October 18, "declaration of an Interim Dividend for FY 2024-25 of Re. 0.50/- (i.e. 50%) per Equity Share of Re. 1/- each. The record date for determining the entitlement of the shareholders for the interim dividend shall be Monday, 28th October, 2024."

Elecon Engineering Shares Performance: Elecon Engineering shares tanked more than 9% in last 1-week, rose 33% year-to-date, zoomed 58% in last 1-year, and gained 250% in last 1-year. The scrip surged 657% in last 3-years, and rose 3868% in last 5-years. The 52-week high price of Elecon Engineering shares on BSE is Rs 738.85 per share (as on 16/10/2024) and 52-week low price is Rs 357.00 per share (as on 26/10/2023).

Elecon Engineering Gives Tax Update On Dividend: The exchange filing of the company said, "In terms of the provisions of the Income Tax Act, 1961, ("the Act"), dividend paid or distributed by a Company on or after 1st April 2020 is taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of dividend. The deduction of tax at source will be based on the category of shareholders and subject to fulfilment of conditions as provided herein below:

For Resident Shareholders: Tax will be deducted at source ("TDS") under Section 194 of the Act @ 10% on the amount of dividend payable unless exempt under any of the provisions of the Act. However, in case of individuals, TDS would not apply if the aggregate of total dividend distributed to them by the Company during financial year does not exceed Rs. 5,000/-."

Should You Buy Elecon Engineering? According to A R Ramachandran, Independent SEBI Research Analyst, "Elecon Engineering is bearish on the Daily charts with strong resistance at 719 on the Daily charts. A daily close below support of 655 could lead to target of 564 in the near term."

Bonus Share History: Elecon Engineering Company offered 1 bonus issue since October 10, 2007. Its last bonus issue was declared in the ratio 2:1 with ex-date fixed as October 10, 2007.

Disclaimer: The stock has been picked from the brokerage report of A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.