This Water Infrastructure stock is in focus after it received a Provisional Compensation Order from the Ministry of Coal, Government of India. Following the order, stock reacted with a jump of 4 percent.
With a market capitalization of Rs. 6,883 Crore, the stock of Electrosteel Castings opened at Rs. 110, up 3.18 percent from yesterday’s close, and after opening, it made a high of Rs. 114.64, up 7.43 percent. Additionally, the Yearly return for the stock is -35 percent, and the past 5-year return is 1,143 percent.
Compensation Order Update
Electrosteel Castings Limited is receiving Rs. 498.72 crore as provisional compensation from the Ministry of Coal for its past investments in the Parbatpur Central Coal Mine, which was taken back by the government after a 2014 Supreme Court ruling. The compensation covers costs incurred by ECL on geological surveys, land acquisition, and mine infrastructure during the time it held the coal block. Further company stated that the amount will have
a material impact on the financials of the company. However, the final determination of the total amount is still pending. The Parbatpur Central Coal Mine was a coal mining project located near Jharia in the Bokaro district of Jharkhand, India. Initially allocated to Electrosteel Castings Limited (ECL) in July 2005
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About the Company
Established in 1955 and headquartered in Kolkata, Electrosteel Castings Limited (ECL). It is a pioneer in India’s water infrastructure industry and a leading manufacturer of ductile iron (DI) pipes and fittings.
Its product portfolio includes DI pipes and fittings, cast iron pipes, flanged and restrained joint pipes, as well as metallurgical products like coke, sponge iron, ferro alloys, pig iron, and cement under the SPL GOLD brand.
The company reported a 15.11 percent YoY decrease in revenue from Rs. 2,004 Crore in Q4FY24 to Rs. 1,701 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 4.43 percent in revenue from Rs. 1,780 Crore in the previous quarter.
Their Net profit saw a decrease of 25.99 percent YoY from Rs. 227 Crore to Rs. 168 Crore for the same period. On a QoQ basis, the company reported an increase of 5 percent in Net profit from Rs. 160 Crore in the previous quarter.
Written By Abhishek Das
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