Shares of Foseco India rose 9% in intraday trade on Tuesday, hitting a more than five-year high of Rs 2,189 on the BSE after the company reported a 51% jump in net profit to Rs 1,226 crore in the December quarter (Q4CY22). Shares of the speciality chemicals company were quoted at their highest level since January 2018.

The company, which follows a January-December cycle in the current financial year, reported a 21% rise in its operating income to Rs 105.7 crore, compared to Rs 87.46 crore in Q4FY21.

Ebitda rose 54.6% to Rs 18.06 crore. Ebitda’s margin improved 373 basis points to 17.08% from 13.35% a year earlier.

Meanwhile, its board of directors has recommended a final dividend of Rs 25 (250%) and a one-off special dividend of Rs 15 (150%) per paid-up share capital of Rs 10 for the financial year ending December 31, 2022). A total final dividend of Rs 40 per share (400%) has been paid.

Foseco India proposed a one-time special dividend in 2023 after the company’s 65 years of existence.

The company’s shares have risen 65% over the past year, with a 5.4% gain in the S&P BSE Sensex index.

Foseco India is engaged in the manufacture of products for the metallurgical industry. The product is a property of additives and consumables to improve castings’ physical properties and performance. Manufacturing operations are in Sanaswadi and Puducherry.

India remains the world’s second-largest producer of castings after China. The Indian foundry industry produces metal castings for applications such as automobiles, tractors, railways, machine tools, pipeline defence, aerospace, construction, mining, textiles, cement, electrical, power machinery, pumps/valves, wind turbine generators, etc.

The government is expected to continue to increase investment in improving railways and building other critical infrastructure, thereby boosting demand for construction, mining, and general engineering products.