Kalyani Steels Shares Rise Nearly 11% After Q4 Results

Shares of Kalyani Steels Ltd. rose nearly 11% after its fourth quarter profit rose 42% to Rs 80.2 crore.

In comparison, the company in the previous quarter posted a profit of Rs 56.4 crore. The producer of forging and engineering quality carbon and alloy steels posted a 12.5% jump in revenue at Rs 544 crore against Rs 484 crore reported in the previous quarter.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 37% year-on-year to Rs 114 crore. The Ebitda margin expanded to 17.2%.

In addition, the company also announced a dividend of Rs 10. However, the dividend is subject to approval of the members at the ensuing annual general meeting.

Last year, the company signed an MoU with the Odisha government to set up a manufacturing facility with an investment of Rs 11,750 crore.

Part of the over $3-billion Kalyani Group, Kalyani Steels is a leading manufacturer of forging and engineering quality carbon and alloy steels using the blast furnace route.

Shares of Kalyani Steels rose as much as 10.98% to Rs 774 apiece, the highest level since April 22. It pared gains to trade 7.56% higher at Rs 750.10 apiece, as of 2:12 p.m. This compares to a 0.57% advance in the NSE Nifty 50.

The stock has risen 13.24% in the last 12 months and 35.43% year-to-date. Total traded volume so far in the day stood at 8.4 times its 30-day average. The relative strength index was at 52.58.