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Franklin Industries Ltd foray in to Contract Farming Business

Business | December 5, 2023 3:50:32 PM IST
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PNN

Ahmedabad (Gujarat) [India], December 5: Gujarat based Franklin Industries Ltd (BSE - 540190) engaged in the trading of agriculture commodities has announced its strategic initiative to diversify its business operation in to the domain of contract farming business. The decision comes as part of its continuous efforts to enhance the company's performance and drive sustained growth. The company expects, the strategic expansion will not only strengthen our market position but also add value to our shareholders by creating new avenues for growth and profitability.

Company at the board meeting held on 27 November has recommended Sub-Division of 1 (one) Equity Share of face value of Rs 10 each fully paid up into 1 equity Shares of Rs 1 each fully paid up, resulting in issuance 10 Equity Shares of Rs 1 each fully paid up, thereby keeping the paid up capital intact subject to the approval of the Members in the ensuing Extra Ordinary General Meeting. The Board has decided to held the Extra Ordinary General Meeting of the Company as on 28 December, 2023.

Highlights:-

* Company announces stealer earnings for H1FY24 - PAT up 429% and Revenues up 274% Y-o-Y

* Board of Directors of the company met on 27 November to consider stock split

* Foray into contract farming is expected to contribute to company's growth trajectory in multiple ways including Diversification, Improved Performance & Sustainable Development

* Strategic expansion will not only strengthen our market position but also add value to our shareholders by creating new avenues for growth and profitability.

Contract farming offers significant potential for expansion and innovation within its business framework. This initiative aligns with the company's vision to optimize agricultural practices, leverage technological advancements, and establish mutually beneficial partnerships with local farmers and agricultural stakeholders.

The company further added that its foray into contract farming is anticipated to contribute positively to company's growth trajectory in multiple ways, including:

1. Diversification: Entry into contract farming diversifies our revenue streams and mitigates risks associated with seasonal variations in other sectors.

2. Improved Performance: Leveraging the efficiencies of contract farming, we expect increased productivity, cost optimization, and enhanced supply chain management.

3. Sustainable Development: Through responsible agricultural practices, we aim to contribute to sustainable farming methods, supporting local communities and fostering environmentally friendly approaches.

The company believes that this strategic expansion will not only strengthen our market position but also add value to our shareholders by creating new avenues for growth and profitability."

As Franklin Industries Ltd. embarks on this journey into contract farming, it is committed to maintaining transparency and keeping its stakeholders informed about the developments and milestones achieved along the way. The company remains dedicated to its core values of integrity, innovation, and shareholder value creation. The shareholders' continued support and trust in the company are highly valued and appreciated.

Earlier, the company announced stellar earnings for H1FY24 & Q2FY24. For H1FY24, the revenue from operations was reported at Rs 15.80 crore, a growth of 273.83% Y-o-Y. Further, EBITDA grew 429.27% Y-o-Y, to Rs 1.83 crore. EBITDA margins grew 336 bps, from 8.19% (H1FY23) to 11.55% (H1FY24). PAT grew 429.28% Y-o-Y, and was reported at Rs 1.82 crore.

Board of Directors of the Company met on 27th November, 2023, to consider Sub-Division of face value of equity Shares of the Company.

(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)