Avantel spurts after Q2 PAT rises nearly 3x YoY; board OKs 2:1 bonus equity issue

Net sales increased by 50% to Rs 54.33 crore during the quarter. On the segmental front, revenue from Communications and signal processing products was Rs 54.57 crore (up 50.4% YoY) and that from Health Care was Rs 0.16 crore (up 32.3x YoY).

Profit before tax in Q2 FY24 stood at Rs 22.20 crore, up by 191.7% from Rs 7.61 crore in Q2 FY22.

The company's board has approved the issue of bonus shares in the ratio of 2:1 i.e., 2 equity shares for every 1 equity share held by the equity shareholder of the company as on a record date to be fixed thereon.

The bonus shares will be issued out of free reserves and retained earnings available as at 30 September 2023, which amounted to Rs 119.43 crore. The quantum of funds required for implementing the said bonus issue is Rs 32.43 crore.

Avantel specializes in providing strategic solutions to the Indian Defence Services and related establishments. It has developed and manufactured various radio components and unique products su ch as Satellite Communications, HF Communications, Electronic Warfare, and Radar systems. Currently, Avantel is working on expanding its portfolio by developing SCA-compliant Software Defined Radios, High Power HF systems, Air Defence Radars, and Small Satellites.

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