Apollo Micro Systems Ltd incorporates a new subsidiary; details inside

Apollo Micro Systems Ltd informed that the company has incorporated a subsidiary company named “APOLLO DEFENCE INDUSTRIES PRIVATE LIMITED”.

Karunakar Reddy Baddam, the promoter of Apollo Micro Systems Ltd, subscribed to 1,400 Equity Shares of Rs 10 each in Apollo Defence Industries Private Limited.

Apollo Defence Industries Private Limited will collaborate with both domestic and international companies to develop defence platforms. This business aligns with Apollo Micro Systems Limited’s existing business and complements it, while also expanding the parent company’s horizons to larger platforms by leveraging its technological support.

Apollo Micro Systems Ltd., a pioneer in the design, development, assembly, and testing of electronic and electro-mechanical solutions, earlier announced its quarterly results ended June 30, 2023.

The company’s total revenue for Q1FY24 stood at Rs 57.69 crore, up 2.53% from Q1FY23. Operating profit stood at Rs 12.96 crore, up 29.19% from Q1FY23. Profit after tax stood at Rs 1.65 crore, up 1% from Q1FY23.

For the full financial year FY23, the company’s net sales increased by 1.13% to Rs 106.85 crore and net profit increased by 28.18% to Rs 18.74 crore over FY22.

The company also announced a final dividend of 0.025 per equity share of the face value of Rs 1 each for FY23. The record date for the dividend is September 22, 2023.

Earlier in the current financial year, the company underwent a stock split, reducing its face value from Rs 10 to Rs 1. The company traded ex-stock split on May 05, 2023.

In summary, Apollo Micro Systems Ltd delivered modest revenue growth but strong profit growth in Q1FY24. The company also announced a dividend and underwent a stock split in the current financial year.

Apollo Micro Systems stock fell 0.48% on Friday to Rs 53.95 from its previous closing of Rs 54.21. The company has a market capitalization of Rs 1,252 crore.

The stock has given multibagger returns of over 200% in just one year, compared to a 50% rise in the BSE Industrials Index. Investors should keep an eye on this small-cap aerospace and defence stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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