VMS Industries Limited Declares First Interim Dividend of Rs. 0.50 Per Equity Share Amidst Strong Financial Growth and Future Opportunities
VMS Industries Limited, a leading player in ship recycling and asset dismantling, announced the declaration of a first interim dividend of Rs. 0.50 per equity share, amounting to 5% of the face value of Rs. 10 per share for the financial year 2024-25. This announcement was made during a Board of Directors meeting held on Wednesday, July 03, 2024. The dividend will be paid on or before Friday, August 02, 2024, to equity shareholders on record as of Thursday, July 11, 2024. Shareholders are encouraged to update their records with the company’s Registrar and Transfer Agent to ensure timely receipt of dividends. This move highlights the company’s commitment to rewarding its investors and signifies the substantial growth and success it has achieved over the years. The decision to pay an interim dividend reflects VMS Industries Limited’s confidence in its prospects and its commitment to enhancing shareholder value.
In the fiscal year 2023-24, VMS Industries Limited achieved its highest-ever annual revenue of Rs. 26,637.28 lakhs, marking a significant growth of 89.74% compared to the previous year. The company’s full-year Profit After Tax (PAT) increased to Rs. 631.53 lakhs, growing by an impressive 152.86%. This remarkable financial performance is a testament to the company’s strategic initiatives and robust operational management. VMS Industries also bagged new orders worth approximately Rs. 16,800 lakhs in June 2023, further bolstering its growth trajectory.
The company’s financial highlights for the 12-month period of FY’24 showcase significant improvements across key metrics. Revenue surged to Rs. 26,637.28 lakhs, marking an 89.74% increase from the previous year’s Rs. 14,038.87 lakhs. The EBITDA for the full year reached Rs. 1,054.20 lakhs, reflecting a growth of 110.14%. Profit Before Tax (PBT) stood at Rs. 844.64 lakhs, a growth of 183.11%, while Profit After Tax (PAT) surged to Rs. 631.53 lakhs, representing a growth of 152.86%.
Under the leadership of Managing Director Mr. Manojkumar Jain, VMS Industries has consistently demonstrated operational excellence and resilience. Mr. Jain attributes the company’s exceptional performance to efficient working capital management and a strategic focus on the asset dismantling business. He remarked, “We are immensely proud of VMS Industries Limited’s exceptional performance in FY’24, marked by robust revenue growth and profitability. Our strategic initiatives have yielded significant results, as evidenced by the substantial increase in revenue and profitability metrics. The efficient management of working capital and focus on the asset dismantling business further underscore our operational excellence and resilience.”
VMS Industries offers a range of services including ship recycling, trading of various metals, and asset dismantling and demolition. The company has a ship-breaking facility at Alang-Sosiya Ship Breaking Yard, which has received certifications from NK Class (Japan) and ISO certifications (9001, 14001, and 45001) from Bureau Veritas. Leveraging its established contacts in the metal industry, the company aims to diversify further into asset dismantling and demolition. Recently, VMS Industries secured a significant contract for dismantling and cutting incomplete ships and ship blocks at ABG shipyard, Dahej, weighing approximately 48,000 MT and valued at Rs. 163.20 crores plus GST from Welspun Corp Limited.
Looking ahead, VMS Industries remains committed to its growth trajectory, focusing on strategic initiatives and future opportunities. The global ship recycling industry is expected to see substantial growth, with more than 7,000 vessels recycled worldwide in the past decade and projections indicating this figure could double in the next ten years. India’s share in ship recycling is also expected to increase, providing VMS Industries with robust growth opportunities in ship breaking and asset dismantling and demolition. The company remains optimistic about its future prospects, poised for sustained growth and value creation for its stakeholders.
Mr. Jain emphasized the company’s outlook, stating, “Looking ahead, we anticipate strong revenue performance across major segments fueled by expected growth in the ship recycling business and asset dismantling business. Our strategic initiatives and efficient operations have positioned us well to capitalize on future opportunities in the ship recycling and asset dismantling sectors.”
Incorporated on December 2, 1991, VMS Industries initially provided consulting and information technology services. However, with the revival of the ship-breaking industry in 2003-04, the company diversified its activities. Today, VMS Industries is a leading name in ship recycling and asset dismantling, with a strong track record of growth and operational excellence.
The declaration of the first interim dividend and the company’s impressive financial performance underscore VMS Industries’ commitment to enhancing shareholder value and its confidence in future growth prospects. As the company continues to execute its strategic initiatives, it remains focused on delivering sustained growth and creating value for its investors and stakeholders.
For more information visit: https://www.vmsil.in/