A small-cap company with a market valuation of 679.01 Cr, Vikas Lifecare Limited works in Commercial Services industry. The core business of the company is manufacturing and trading of PVC and plastic products. The Board of Directors of Vikas Lifecare Limited today approved investment in Kohinoor Foods up to Rs. 250 crore, after which Vikas Lifecare shares closed on the green note with a 6% decline.
The company stated in a stock exchange filing that “In line with the company’s pre-determined long-term growth strategies, the Board of Directors of Vikas Lifecare Limited has approved to invest up to Rs. 250 crore in Kohinoor Foods Limited, to enhance the product portfolio of the company.” With the objective of broadening, and consolidating its position in the industry matrix, the existing business lines of the Company by way of fresh equity, quasi capital, or any combination thereof, and the existing promoters of Kohinoor Foods Ltd. to enter into definitive agreement with the Company to acquire a substantial stake, subject to necessary statutory approvals and due diligence.”
The Managing Director of the company Mr. S.K. Dhawan commented, “We are pleased to announce the Board’s decision to make a strategic investment of up to Rs. 250 crores in Kohinoor Foods Ltd., a legacy of nearly 5 decades, their pioneering and unique position in the Basmati rice and processed food products industry across the globe.
Vikas Lifecare will be able to expand its product line and strengthen its market position in the FMCG industry, which is currently at its nascent stage, thanks to this acquisition. The investment is in line with the company’s defined future-oriented growth strategy, focused on developing a strong product offering.
On a standalone basis, Vikas Lifecare’s net revenue grew by 74.59% to Rs. 34,626.48 Lakh in Q3FY23 as compared to Rs. 19,833.44 Lakh in Q2FY22 and the net revenue on a consolidated basis grew by 80.48% YoY to Rs. 35,794.90 lakh in the quarter ending December 2022 as compared to Rs. 19,833.44 lakh in the quarter ending December 2021. 978.34 Lakh in Q3FY22, EBIDTA grew by 55.59% to Rs. 1,522.17 lakh on a standalone basis in Q3FY23 and EBIDTA on a consolidated basis at Rs. 1443.96 Lakh in Q3FY23 as compared to Rs. 978.34 Lakh in Q3FY22, up 47.59% YoY. Net profit on a standalone basis stood at Rs. 1,288.57 Lakh in Q3FY23 as compared to Rs. 577.77 Lakh in Q3FY22, up 123.02% YoY and on a consolidated basis, Vikas Lifecare’s Net Profit stood at Rs. 1129.79 Lakh in Q3FY23 as compared to Rs. 565.29 lakh in Q3FY22, up 99.86% YoY.
Vikas Lifecare Limited shares closed today on BSE 4.72, up 6.31% from its previous close 4.44.
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