650% Returns In 3 Years: Dividend Paying Multibagger EPC Company Announces 120% Surge In Q4 Profit

EPC firm Man Infraconstruction Ltd (Man Infra) has reported over twofold increase in its standalone net profit, reaching Rs 66.53 crore for the quarter of the financial year 2024. This surge, as announced in an exchange filing, marks a substantial leap from the Rs 29.81 crore net profit posted during the corresponding quarter of the previous fiscal year.

While the company's total income experienced a dip to Rs 186.22 crore from Rs 370.47 crore in the January-March period of FY23, Man Infraconstruction managed to curtail its expenses impressively. Slashing its expenditures to Rs 114.90 crore from Rs 332.17 crore a year ago, the company notably reduced its cost of materials to Rs 57.35 crore from Rs 265.93 crore in the fourth quarter of FY23.

Man Infraconstruction operates across various sectors including ports, infrastructure, commercial projects, institutions, IT projects, and futuristic lifestyle houses, thereby presenting a diversified portfolio.

Reflecting on its performance over the past four years, from FY21 to FY24, the company has exhibited robust growth metrics. Total income has risen from Rs 452 crore to Rs 1,360 crore, marking a substantial upward trajectory. Moreover, there has been a notable increase in Profit Before Tax (PBT) from Rs 55 crores to Rs 397 crores, representing a 93% Compound Annual Growth Rate (CAGR). PBT Margin has surged from 12.1% to 29.2%.

The company's Profit After Tax (PAT) has seen remarkable growth, escalating from Rs 32 crores to Rs 300 crores, with a staggering 111% CAGR. Notably, Man Infraconstruction stands out as one of the few Net-Debt Free companies in the Real Estate sector, boasting a substantial cash and bank balance of Rs 741 crores.

The company is poised to receive Rs 407 crores from equity warrants holders of the preferential issue made in December 2023. Man Infraconstruction achieved Cash flow from Operations of Rs 572 crores in FY24.

At the helm of the MICL Group's real estate endeavours is Man Infraconstruction Limited (MICL), an integrated EPC company renowned for its execution prowess across port, residential, commercial, industrial, and road construction segments. With a market capitalization of Rs 7,540 crore.

As of 1:45 pm on the National Stock Exchange (NSE), shares of Man Infraconstruction were observed trading with minor cuts of 0.6% at Rs 203.30 per share. Remarkably, the stock has delivered multibagger returns, soaring nearly 130% in the past year alone. Over the last three years, the stock has surged by more than 650%.

For the fiscal year ending March 2023, Man Infraconstruction declared an equity dividend of 45.00%, amounting to Rs 0.9 per share. At the prevailing share price of Rs 202.40, this translates to a dividend yield of 0.44%. With a commendable track record of consistent dividend payouts over the last five years, MICL reaffirms its commitment to creating value for its shareholders.

Highlighting the company's shareholder-friendly approach, Man Infraconstruction last announced a bonus issue in 2021, in the ratio of 1:2. The shares have been quoting ex-bonus since November 17, 2021, reflecting the company's endeavour to reward investors for their continued support and confidence.

Additionally, Man Infraconstruction undertook a face value split of its shares from Rs 10 to Rs 2 in 2014, further enhancing liquidity and accessibility for investors. Since August 28, 2014, the shares have been trading on an ex-split basis, facilitating greater participation in the company's growth story.