BigBloc Construction reported that its net consolidated profit grew by 48.64% during the quarter ending 30th June 2024. The company noted that its profit after tax stood at Rs 30.3 million in Q1 FY25, compared to Rs 59 million recorded in the same quarter of the previous fiscal, as stated in a filing to the Bombay Stock Exchange (BSE).
The company?s net consolidated total income for Q1 FY25 was Rs 522.6 million, reflecting a decrease of 4.86% from the Rs 54.93 crore reported in the corresponding quarter of the previous year.
Narayan Saboo, chairman of BigBloc Construction, mentioned that with the ongoing projects at Kapadvanj and Wada proceeding as planned, the company is on track to significantly impact the market. To reward shareholders and enhance liquidity, the board has recommended a bonus issue to reinforce the company's equity base.
BigBloc's capacity utilisation for the first quarter stood at 78%. The installed capacity increased from 300,000 CBM to 400,000 CBM per annum as of 1st June 2024, with further expansion expected to raise the installed capacity to 500,000 CBM.
During its board meeting on 19th July 2024, the company recommended issuing bonus equity shares in a 1:1 ratio, meaning shareholders will receive one bonus share for every existing equity share held, subject to shareholder approval at the AGM on 29th August 2024. Rs. 28.31 crore from free reserves will be utilised for this Bonus Issue, with the shares expected to be credited by 18th September 2024, pending the necessary approvals.
Saboo added that the company experienced flat volume growth in Q1 FY25 due to market disruptions from the Holi festival and delays related to the Loksabha Elections, which particularly impacted the West and North regions reliant on migrant labour. Additionally, in Ahmedabad and Gandhinagar, construction activities were halted for 4 to 5 hours daily in May 2024 due to extreme heat, following Municipal Corporation guidelines, which affected block demand. Furthermore, the Umargaon plant has been undergoing a planned temporary shutdown for technology upgrades since 18th May 2024.
