Speciality Retail Stock Announces 1st Interim Dividend, Q1 Results Positive; Do You Own?

Considering that it announced its first interim dividend for FY25 and had positive Q1 results, Bhatia Communication & Retail (India), a small-cap company in the consumer services industry, is probably going to be in the spotlight going forward. In comparison to the Rs 3.57 crore net profit in the quarter ending in June 2023, Bhatia Communications & Retail (India) had a 2.24% growth to Rs 3.65 crore in the quarter ending in June 2024. Revenue climbed by 7.98%, from Rs 97.07 crore in Q1FY24 to Rs 104.82 crore in Q1FY25.

"The Board is pleased to recommend a dividend of 1% i.e. Re. 0.01 per equity share for the financial year 2023- 24. The dividend if approved by the members will be paid to the members within time limit defined in the Companies Act, 2013. As on 31 March 2024 the Company's unclaimed dividend balance was Rs. 63,332/-," said the company in a stock exchange filing.

The dividend shall be paid within 30 days of declaration by shareholders, if declared in the ensuing AGM. "A person who has acquired the shares and has become a member of the Company after the dispatch of the Notice of the AGM and prior to the Cut-off date i.e. 30th August, 2024, shall be entitled to exercise his/her vote either electronically i.e. remote e-voting or the e-voting during the Annual General Meeting," Bhatia Communication has informed the market places.

The Register of Members and the Share Transfer Books of the company will remain closed from 31st August, 2024 to 06th September, 2024 (both days inclusive).

"Over the last few years, as a growth oriented company we have focused on diversifying into other consumer electronics products as we see a long runway for growth in sales of these products. This has helped us to only emerge as a multi-product brand but has also grown our profitability margins. With an ambitious growth spree, the company's revenue from multi product stores stands at INR 23 Crores. 28 stores sell electronic appliances such as Television, Refrigerator, Air Conditioners, Air Coolers, Washing Machines, and Microwaves, though our prime business still remains retail and wholesale distribution of mobile handsets, tablets, data cards and mobile accessories. Besides this, the conversion rate is at a whopping 98%. The total revenue of the company stood at INR 415 Crores which was INR 344 Crores in previous year. The company now owns a total of 203 stores, out of which 193 are owned stores and 10 are franchised," the Board of Directors of Bhatia Communication said in a regulatory statement.

Commenting on the future growth prospects, the Board highlighted that "The stores of our company has been spread over the Gujarat covering almost every area even the rural and the remote areas. Also, the company has set its footing in Maharashtra this year. Our decision to invest in this growth spree roots from the fact that we are bullish on the demand of various consumer electronic items as the work from home culture spreads. The company strives to build a stronger brand image by offering attractive prices and loyalty programmes for its customers. It plans to expand its business in the country and enter into business agreements with various leading brands to upgrade customer experience."