Mayukh Dealtrade Ltd to raise up to Rs. 49 crore through Rights Issue

Business

Mumbai (Maharashtra) [India], September 4: Board of Directors of Mumbai-based Mayukh Dealtrade Limited, a BSE-listed firm (BSE: 539519) engaged in manufacturing of various kinds of burners has approved the proposal for raising funds up to Rs. 49 crores through issue of Equity Shares by Right Issue to the eligible shareholders of the company on August 30, 2024. The board has also authorized the Managing Director and CFO to appoint consultants and start the process of the right issue.

The board also approved the proposal 5-for-1 stock split.  The board discussed and approved the proposal of Sub-division of 1 equity share of face value of Rs. 5 into 5 equity shares of face value of Rs. 1 fully paid-up equity share, subject to the shareholders’ approval in General meeting of the company.

The board also discussed and approved the proposal of increase in the authorized share capital from Rs. 30 crores divided into 30 crore equity shares of Rs. 1 to Rs. 63 crore divided into 63 crore equity shares of Rs. 1 each by creation of additional 33 crore equity shares of Rs. 1 each, subject to the shareholders’ approval in General meeting of the company.

Highlights:

  • Board approved proposal to increase authorised share capital to Rs. 63 crore from Rs. 30 crore
  • Board considered changing the company name to the proposed “Sattva Sukun Lifecare Limited” or any other name available through the ROC/MCA.
  • Net Profit in Q1FY25 rise 328% to Rs. 33.77 lakh, Net sales rise 18.6% to Rs. 69.59 lakh
  • In FY24, Net Profit rise 101% Yo-Y to Rs. 1.19 crore; Net Sales up 60.57% to Rs. 3.55 crore

Company recently announced robust financial results for the quarter ended on 30th June, 2024. For the Q1FY25, the company has reported a net profit of Rs. 33.77 lakh, a sharp increase of 327.46% compared to Rs. 7.90 lakh net profit reported in the same period previous financial year. Company’s income from operation were reported at Rs. 69.59 lakh in Q1FY25, increased from Rs. 58.69 lakh in Q1FY24, an increase of 18.57%.

Additionally, the Board considered changing the company name to the proposed “Sattva Sukun Lifecare Limited” or any other name available through the ROC/MCA. The Managing Director has been authorized to apply for name reservation. The final approval will be subject to shareholder approval at the upcoming AGM.

Consolidated Financial Highlights (Rs. Lakh)

Q1 FY25Q1 FY24Y-O-YFY24FY23Y-O-Y
Net Sales69.5958.6918.57%355.33221.2860.57%
Net Profit33.777.90327.46%119.0459.23100.97%

Commenting on the performance of the company, Mr. Mit Brahmbhatt, Managing Director, Mayukh Dealtrade Ltd said, “We are overwhelmed with the performance of our team in Q1FY25. The results are in line with our expansion and growth plans. The company is growing stronger, healthier, and reaching new heights. Our stakeholders’ faith and confidence have been critical fuel in our never-ending journey of steady growth and improvement. We aim to continue the pace of growth and further concrete our position in the market.”

For the financial year 2024, the company had reported a Net Profit of Rs. 1.19 crore, as compared to a net profit of Rs. 59.23 lakh, resulting in an increase of 101% Y-o-Y. For the year ended on 31st March, 2024, the company’s income from operations / net sales rise 60.57% to Rs. 3.55 crore as compared to net sales of Rs. 2.21 crore in FY2023.

The global electrical equipment market reached a value of nearly $1,180.0 billion in 2020, having increased at a compound annual growth rate (CAGR) of 3.1% since 2015. The market is expected to grow at a CAGR of 7.1% from 2020 to reach $1,662.7 billion in 2025. The global electrical equipment market is expected to reach $2,248.2 billion in 2030, at a CAGR of 6.2%.

“While energy policies have led to efficiency gains, especially for major household goods such as refrigerators and televisions, small appliances and consumer electronics are not aligned with global climate goals and continue to be unregulated in most countries. Expanded policy coverage and increased stringency are needed in all countries”, believes Mr. Brahmbhatt

Growth in the historic period resulted from economic growth in emerging markets, favourable government initiatives, and technological advances. Factors that negatively affected growth in the historic period were political uncertainties and geopolitical tensions, and volatile metal prices. Going forward, innovations in electrical equipment, rising investments in energy efficient infrastructure, and appropriate government initiatives will drive growth.

The electrical equipment market is segmented by type into electric lighting equipment, household appliances, power generation, transmission and control equipment, batteries, wires and cables. The power generation, transmission and control equipment market was the largest segment of the electrical equipment market segmented by type, accounting for 38.2% of the total in 2020. Going forward, the batteries segment is expected to be the fastest growing segment in the electrical equipment market, at a CAGR of 9.1% during 2020-2025.

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