Bhatia Communications & Retail Ltd Announces Record Date For Interim Dividend

Today, the shares of Bhatia Communications & Retail Ltd are priced at Rs 30.61, nearly reaching its 52-week high of Rs 38.90 and its lowest price at Rs 18.87. Further, the company has fixed a Board Meeting for November 13, 2024, to set the date on which an ordinary dividend in respect of equity shares, having a face value of RS 1 each and fully paid up, will be issued. The dividend is to be payable to such shareholders who are registered with NSDL and CDSL as of the end of business day on Wednesday, November 27, 2024.

In terms of financial transactions, Bhatia Communications entered into a Loan Agreement with Interlink Warehousing LLP concerning a non-secured inter-corporate loan in the amount of Rupees 5 Crore. The amount of the loan would not be issued shares or related to any parties with the loan made charging an annual interest of 15% and has a term of six months or what was directed by Bhatia Communications. This contract, signed on September 20, 2024, involves Bhatia Communications being the lender and Interlink Warehousing LLP as the borrower overall enhancing the operations of the company.

In the first quarter of the fiscal year, Bhatia Communications registered the best-ever results so far as financial reports go and net profit has also been up. Net sales increased by 11.62 % amounting to Rs 104.82 in sales up from Rs 93.91 in Q4 of the previous year, similarly, net profit grew by 22.5 % to Rs 3.65 in sales compared to Rs 2.98 in the previous quarter. In FY24 the firm's annual performance results sloshed with increased figures as well, and these figures were recorded net revenues of a total of 31.3% with net revenues standing at 413.79 crores, while on the other hand, net profits surged by 20.8% and stood at Rs 11.52 crores compared to FY23. As of now, Bhatia Communications enjoys a market capital standing at Rs 383 crores, where the company registered PE at 36x ROE and ROCE at 20% and 22% respectively. Just shortly before the commencement of September 2024 the Promoters as well increased their stake which prevailed at 73.88% as compared to June 2024 when it was 73.85 % as they believe in the company's future worth.

Also, the Board of Directors of the Company resolved to issue on the 20th July 2024 convertible warrants to the promoters and public investors for an amount not more than 1.55 crores at a price of Rs 23.36 a warrant, with an expected fundraising amount of Rs 36.20 crores. However, following the next meeting held on the 2nd August 2024, the price of one warrant was adjusted to Rs 23.75 which increased the possible maximum amount to Rs 36.81 crores. These factors were incorporated in the resolution approving the issue of a corrigendum to the notice of Extra-Ordinary General meeting where further provisions were incorporated regarding revised issue price, post-issue holding structure and other factors for the stock exchange compliance.

Mobile Devices, Accessories, Electronics, and Home Appliances Distribution is carried out by Bhatia Communications & Retail (India) Ltd as a vast distributor for the retailing and wholesaling of electronics. Bhatia company has distribution agreements with many brands like Apple, Samsung, OnePlus, Vivo, Oppo, Realme, Xiaomi, Motorola and others. With per-store average capital expenditure of Rs 8 to 10 lakhs, Bhatia Communications operates a network of 172 stores pan India with 160 owned and 12 franchise stores. Its broad network enhances its penetration and market strength in the competitive electronics industry.