Household appliances maker, Eureka Forbes on Tuesday skyrocketed by more than 14% on exchanges. The stock ended near its day’s high. Investors’ strong bullish tone in Eureka comes after the company posted triple-digit growth in net profit during Q4 of FY23. The company also witnessed robust growth in revenue and EBITDA, while its margins improved further. Not just that, Eureka has also announced a grant stock option to the tune of 1.35 crore for its eligible employees.
On BSE, Eureka’s stock price closed at ₹454.95 apiece up by ₹53.90 or 13.44%. But the stock has gained by at least 14.5% with an intraday high of ₹459 apiece in the trading hours.
Strong growth in Q4FY23:
Eureka’s owners earned a net profit of ₹20.59 crore in Q4FY23, rising by a whopping 346.32% YoY and 199.25% QoQ. Revenue also saw robust growth of 35.92% YoY and a healthy upside of 7.40% QoQ to ₹508.57 crore.
In the quarter, EBITDA stood at ₹47.4 crore, up 35.6% YoY). While the EBITDA margin improved by 300 bps to 9.3%.
Pratik Pota, MD, and CEO, of Eureka Forbes said, “Execution of specific transformation initiatives helped improve our EBITDA margin to 9.3%, up by 300bps YoY and by 61bps sequentially. This combined with a 72% YoY reduction in our net debt will allow us the headroom to invest for growth. Looking ahead to the future, we are confident of driving sustained performance on the back of differentiated innovations, an elevated customer experience & a more efficient business model.”
Pota also added, “faced with an ongoing soft demand environment, we continued to move ahead on our strategic priorities in Q4 FY23 and on improving the financial health of the business. We launched a new advertising campaign in Q4 targeted at non-users of the category, and we also introduced several key innovations in the market.”
For the full year FY23, Eureka earned a net profit of ₹26.55 crore versus ₹2.60 crore in FY22. Revenue came in at ₹2,084.50 crore versus ₹381.75 crore in FY22.
Eureka employees’ stock options plan:
Also, as per the regulatory filing on Tuesday, Eureka announced that over 1.35 crore stock options have been granted to the eligible employees of the company.
Eureka said that each stock option carries the right to apply for and be allotted 1 equity share having a face value of ₹10 each of the company. The options plan will vest not earlier than the minimum period of 1 year and not later than the maximum period of 7 (Seven) years from the date of the Grant.
Further, the exercise period shall be a maximum of four years from the date of the respective vesting of the Options.
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Updated: 30 May 2023, 03:48 PM IST