The shares of telecom and infrastructure development companies 5 percent after the company’s board fixed the Record Date for the bonus issue in the ratio of 2:1.
With a market capitalization of Rs 741.08 core, the shares of Kore Digital Ltd were trading at Rs 1,849 per share, increasing around 4.40 percent as compared to the previous closing price of Rs 1,771.00 apiece.
Reason for Rise
The shares of the company have seen positive movement after Kore Digital Ltd’s board of directors fixed Friday, January 17, 2025, as the Record Date, to ascertain the eligibility of shareholders entitled to the issuance of Bonus Equity Shares in the proportion of 2:1, i.e 2 new fully paid- up equity Shares of Rs. 10 each for every 1 existing fully paid-up equity Share of Rs. 10 each.
Financial performance
Analyzing a company’s financial performance, revenue increased by 289 percent from Rs 10.53 crore in Q2FY24 to Rs 41.05 crore in Q2FY25, during the same time frame, the company’s net profit decreased significantly by 8 percent from Rs 2.44 crore to Rs 2.24 crore.
Market Conditions and Industry Insights
The second quarter typically sees weak performance due to monsoons, with recovery expected post-season. Rising demand for communication infrastructure drives growth opportunities. Management is optimistic, and confident in Vodafone’s recovery, and avoids low-margin BharatNet business amid litigation concerns, focusing on strategic execution.
Margin Guidance
The company anticipates lower EBITDA margins as it scales toward ₹1,000 crore in revenue, with a projected net profit margin of 10%. Management stresses maintaining fair margins, acknowledging that higher volumes may reduce profitability.
Also read…
Project Updates
The company generates 30% revenue from telecom and 70% from construction EPC. Management targets ₹300-₹400 crore in revenue this year, contingent on successful tenders, with ongoing processes and potential growth from upcoming projects and government contracts.
The company has initiated new projects, resulting in increased work-in-progress and inventory buildup. To support these projects, management is expanding the team by hiring new managerial and supervisory staff, strengthening operational capabilities and ensuring smooth execution of ongoing initiatives.
Future Outlook
The management remains optimistic about achieving revenue projections, anticipating consistent Q3 and Q4 performance. They are exploring entry into the defense sector through deep technology initiatives, supported by ongoing collaborations with DRDO and IIT, signaling potential growth opportunities in this emerging domain.
Company Profile
Kore Digital Limited is an India-based telecommunication infrastructure provider. The Company is engaged primarily in the business of installing and commissioning poles, towers, and optical fiber cable (OFC) systems in Maharashtra.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
