Engineers India disclosed a 21 per cent jump in September quarter net profit and declared a 1:1 bonus share. Net profit during the July-September increased to Rs 93.75 crore against Rs 77.21 crore in the coressponding period a year before. Nonetheless, turnover, reduced to Rs 394.98 crore for the quarter ended September 30, from Rs 510.32 crore in second quarter of the last financial year.
It said its board at its meeting today recommended the issue of bonus shares which will be in the proportion of one new equity share of Rs 5 each for every existing equity shares of Rs 5 each fully paid up of the company. A bonus issue, known as a scrip issue or a capitalization issue, is an offer of free additional shares to the current shareholders. A company often distributes such shares as an alternative in order to hike the dividend payout.
EIL had last issued a 2:1 bonus share in March 2010. Companies low on cash can issue bonus shares other than cash dividends as a method of giving income to shareholders. Issuing bonus shares rises the issued share capital of the company in order to give a perception of being bigger than it really is, turning it more attractive to investors. Also, increasing the number of outstanding shares reduces the stock price, making the stock more pocket friendly for retail investors. The government holds 59.37 per cent stake in EIL.
On 16th Nov, Engineers India share price rolled above 0.99 per cent. The stock settled at Rs. 259.85 and was trading at Rs. 259.60. Engineers India share price met its 52 week high value at Rs. 278.95 on 25th Oct ’16 whereas the 52 week low value is seen at Rs. 143.10 on 17th Feb ’16.
Engineers India is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels. For further details on the stock, refer to Engineers India share price history.
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