During Thursday’s trading session, shares of one of the world’s leading manufacturers of Power Transmission & Distribution structures and a prominent manufacturer of Telecom and Railway structures surged nearly 4 percent on BSE, after reporting a rise in net profit by around 9.6 percent QoQ and 76.3 percent YoY in Q3 FY25.
Price Movement
With a market cap of Rs. 5,364.5 crores, at 12:36 p.m., the shares of Skipper Limited were trading in the green at Rs. 475 on BSE, up by around 1.5 percent, as compared to its previous closing price of Rs. 468.
The stock delivered positive returns of nearly 62 percent in one year, but around 8.3 percent of negative returns in the last one month.
What’s the news
The fluctuations in the share prices were observed after Skipper Limited announced the financial results for Q3 FY25, through the recent filings with the stock exchanges.
For Q3 FY25, Skipper reported total revenue from operations of Rs. 1,135.2 crores, registering a significant growth of around 2.3 percent QoQ from Rs. 1,109.7 crores in Q2 FY25, and a rise of about 42 percent YoY from Rs. 801.5 crores in Q3 FY24.
The company achieved its highest-ever third-quarter revenue of Rs. 1,135.2 crores, driven by strong performance in its Engineering business segments, which saw a 42 percent increase compared to the same quarter last year.
The Engineering business delivered its best-ever quarterly revenue of Rs. 906.7 crores, compared to Rs. 517.7 crores in the previous year’s quarter, representing an impressive growth of 75 percent. Exports accounted for 20 percent of the total engineering revenue in Q3 FY25.
The company’s net profit for Q3 FY25 to Rs. 36 crores, representing a growth of around 9.6 percent QoQ from Rs. 33 crores in Q2 FY25, and a year-on-year increase of nearly 76.3 percent from Rs. 20.5 crores in Q3 FY24.
EBITDA for Q3 FY25 rose to Rs. 111 crores, reflecting an increase of around 44 percent YoY from Rs. 77 crores in Q3 FY24, while the EBITDA margin surged marginally by 16 bps to 9.77 percent from 9.61 percent, over the same period.
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Order Book for Q3 FY25
As of December 2024, the company’s order book stood at Rs. 6,354.08 crores, marking a 19 percent YoY increase, with 89 percent from domestic markets and 11 percent from exports. In addition, Skipper secured new orders amounting to Rs. 1,318.2 crores, while the total Year-to-Date order inflows stand at Rs. 3,743.3 crores.
Share of non-T&D products, including Railways and Telecom, accounted for 22.87 percent of the total order book.
Domestic contracts with PGCIL and several State Electricity Boards (SEBs) further strengthened the company’s leadership in the power T&D sector. Additionally, international contracts across North and South America have helped establish the company as a global industry leader.
New Business Vertical
The company has commenced the development of specialized capabilities in substation EPC fieldwork, complementing its established expertise in power transmission lines.
As part of this strategic expansion, the company is well-positioned to secure its first major substation EPC contract, marking a significant milestone in its growth within the power transmission sector.
Right issue Proceeds
The company has received the majority pending proceeds of the right issue call money, totalling ~Rs. 148 crores. These funds will be used for working capital, resulting in interest savings and providing support for the business growth.
About the Company
Skipper Limited is engaged in the manufacturing and selling of Transmission & Distribution structures (towers & poles), telecom towers and fasteners within its engineering products segment. Its polymer segment encompasses a range of products such as PVC, HDPE, CPVC, UPVC, SWR pipes and fittings, water tanks, bath fittings, and other related items.
The company is a prominent manufacturer of telecom and railway structures and undertakes engineering, procurement, and construction (EPC) projects as part of its infrastructure segment.
Written by Shivani Singh
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