Power utility company DPSC Ltd (formerly Dishergarh Power Supply Company Ltd) has reported a 5 per cent growth in net profit at Rs 3.13 crore for the quarter ended September 30, on account of higher sales.

Reacting to the decent numbers and announcement of bonus shares, DPSC surged as much as 20 per cent to touch a high of Rs 2,309.90 on the National Stock Exchange.

The company’s net profit for the second quarter of this fiscal increased by 5 per cent to Rs 3.13 crore, as compared to Rs 2.99 crore during the corresponding period last year.

Commenting on the results, Mr Hemant Kanoria, Chairman, DPSC Ltd said, “We have maintained healthy pace of growth in our net sales for yet another quarter and are confident to maintain the same.”

Net sales for the second quarter ended September 30, stood at Rs 130.78 crore, a growth of 19 per cent over the sales of Rs 109.83 crore in the same period last year.

The board of directors of DPSC has approved the issue of bonus shares in the ratio of 22 equity share for every 1 equity share held in the company and declared a stocks split of equity shares of the company in the ratio of 10:1, subject to shareholders approval.

“The issue of bonus shares is in recognition of the invaluable support of the stakeholders and shows our commitment to reward our shareholders for their trust in us,” Mr Kanoria added.

For the half year ended September 2011, DPSC Ltd’s net sales grew by 36 per cent to Rs 283.42 crore and the net profit rose by 9 per cent to Rs 6.93 crore.

Meanwhile, the board has also approved increasing the authorised share capital of the company up to Rs 100 crore from Rs 5 crore of present.

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