What Maharashtra Seamless plans to do with the cash on its books, explains Deputy GM
This is essential, Bengani explained, as the older machines used in the industry 20-30 years ago are no longer available. Replacing this equipment is costly, and Maharashtra Seamless wants to be financially prepared to cover this significant expense. The company’s focus on updating its plant and machinery will help it maintain its strong position in the market.
Additionally, Maharashtra Seamless recently increased its dividend payout for FY24, quadrupling the amount compared to FY22. This is the company’s commitment to sharing profits with its shareholders, according to Bengani. Going forward, dividends and potential share buybacks will continue as ways to distribute cash to shareholders. Both options offer similar tax benefits for investors under the new guidelines, though no immediate plans for a buyback are currently in place.
In Q2 FY25, Maharashtra Seamless reported a 16% year-over-year (YoY) drop in revenue, totalling ₹1,292 crore compared to ₹1,535 crore in the same period last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 31% to ₹231 crore from ₹332.46 crore, while profit after tax decreased by 12%, reaching ₹220.2 crore from ₹250.6 crore. However, other income saw a substantial increase, growing to ₹90.7 crore from ₹30 crore.
Also Read: Maharashtra Seamless stock declines amid Q1FY25 revenue, margin drop
The market capitalisation of Maharashtra Seamless is approximately ₹8,320.88 crore. However, its shares have declined by about 14% over the past year.
For the entire interview, watch the accompanying video
