The shares of the addison cutting tools manufacturer gained up to 2 percent after the company’s board approved the proposal to acquire equity shares of Kores (India) Limited.
With a market capitalization of Rs 381.31 crore, the shares of Birla Precision Technologies Ltd were trading at Rs 58.00 per share, decreasing around 1.44 percent as compared to the previous closing price of Rs 58.85 apiece.
According to the company, Birla Precision Technologies Ltd’s board of directors has approved the proposal to acquire 2,89,018 equity shares which is equivalent to 2.63 percent of Kores (India) Limited from Yash Society, a charitable trust,part of the Promoter Group of the Company.
Furthermore, the acquisition cost Rs 15 crore and would be finished within 15 days. The investment corresponds with the company’s growth ambitions and positions it for long-term success in a dynamic market context.
Looking into Birla Precision Technologies Ltd, the company’s revenue increased by 14 percent, from Rs 59.05 crore in Q3FY23 to Rs 67.29 crore in Q3FY24. During the same period, net profit increased by 72 percent, from Rs 4.09 crore to Rs 7.06 crore.
Birla Precision Technologies Ltd. is the pioneer and largest manufacturer of High-Speed Steel (HSS) Cutting Tools in India. The items are distributed through a large pan-India distribution network, which includes over 350 dealers and 11 branch offices across India.
The firm provides approximately 60,000 SKUs of cutting tools, including Twist Drills, Reamers, Screwing Taps, Tool bits, Cutters, and Files, which are offered under a variety of prominent brand names such as Hathyar, Ninja, Torpedo, Panther and Dagger.
The business plans to increase capacity in drill production facilities by 3 lakh per month from 13 million this year as part of the first phase of growth. In the following phase, it aims to install another 6 lakh drills at a cost of more than Rs 25 crore.
Birla Precision Technologies Limited manufactures and distributes machine tool accessories, tools, precision automobile parts, and castings. The firm is organized into two business segments: Tools, Automobiles and Auto Components, Precision Components, and Casting & Machining.
Written by:- Abhishek Singh
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