Home Financial Record Mirza International hits record high; the stock soared 51% in four weeks

Mirza International hits record high; the stock soared 51% in four weeks

0


Shares of Mirza International hit a record high of Rs 259.45, up 10% on BSE during intraday trading on Thursday, in an otherwise tight market.

Over the past four weeks, shares of the leather and leather goods company have soared 51% after reporting a tripling of consolidated profit after tax (PAT) of Rs 30.24 crore in the March 2022 quarter ( Q4FY22). It had posted a PAT of Rs 8.89 crore in Q4FY21.

By comparison, the S&P BSE Sensex rose less than 1% over the period. The company’s revenue in the quarter jumped 42% year on year (YoY) to Rs 445 crore from Rs 313 crore in the prior year quarter.

For the financial year 2021-22 (FY22), the net profit of Mirza International increased almost 14 times to reach Rs 112.86 crore against Rs 8.33 crore for FY21. While operating revenue increased by 60% year-on-year to Rs 1,678 crore from Rs 1,049 crore in the prior fiscal year.

Mirza International is engaged in the design, development, manufacture, marketing, trade, export and retail of leather footwear, sports footwear, apparel and apparel, articles and accessories. ‘leather accessories, and other related business. The company also owns and operates a leather tannery for captive consumption.

In the meantime, the company’s board of directors, at its meeting on December 10, 2021, had approved the composite plan of arrangement for the merger of RTS Fashions Private Limited with and into Mirza international Limited, and the spin-off of the business branding/Redtape Business of Mirza International into Redtape Limited on a continuing operating basis from 1 January 2022, subject to required approvals.

Mirza International will issue 22 shares of Rs 2 each to shareholders of RTS Fashions for every 10 shares of Rs 10 each held in the company. Redtape will issue 1 share of capital to shareholders of Mirza International for each share of capital held in the company.

In order to streamline various activities of the Mirza Group, unlock the true value of its business, achieve management efficiency and accelerated growth, management proposed consolidating all overseas operations into Mirza International; and to separate the APE Business brand/REDT activities into a separate company.

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor