Vikas Lifecare's share rallied more than 9 per cent during the early trade on Wednesday, bucking the bloodbath in the broader markets. The company's shares rose on the back of strong performance in the December 2022 quarter and investment in Kohinoor Foods.
Vikas Lifecare reported a 120 per cent rise in the net profit at Rs 6.19 crore for the quarter ended on December 31, 2022, which was Rs 2.82 crore in the year ago period. The company had clocked a 25 jump in the revenue from operations at Rs 133.95 crore in Q3FY23, which was Rs 106.74 crore in the Q3FY22.
Vikas Lifecare's board also approved the proposal to invest Rs 250 crore in Kohinoor Foods to expand its product portfolio and strengthening its positioning in industry. The company may invest in Kohinoor Foods in form of fresh equity or quasi capital or any combination of thereof.
Vikas Lifecare's share soared about 9 per cent during the session to Rs 4.84 but the stock settled at Rs 4.66, posting 5 per cent gains. The stock has risen marginally in the last one month, but it down 32 per cent in the last one year.
BSE and NSE-listed Kohinoor Foods is engaged in the business of basmati rice and other processed food products across the globe for over five decades. Vikas Lifecare is aiming to make Kohinoor Foods into a debt-free entity.
Shares of Kohinoor Foods surged 8 per cent to Rs 84.05 during the trading session on Wednesday but settled flat at 78.20 for the day. The stock is up by 45 per cent in the last one month.
Process is being initiated to appoint necessary intermediaries, merchant bankers, legal advisors, industry experts and others to assist and advise for successful closure of the deal in targeted time, said Vikas Lifecare in the exchange filing.
Vikas Lifecare reported had net profit at Rs 2.46 crore in the September 2022 quarter, with a revenue from operations at Rs 131.81 crore.
Vikas Lifecare's net profit surged more than 100 per cent to Rs 11.31 crore for the nine months ended on December 31, 2022 from Rs 5.65 crore in the year ago period. The company reported 80 per cent increase in the revenue from operations at Rs 357.95 crore during the given period.
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