The share of this railway equipment manufacturing company hit a 5 percent upper circuit after announcing decent June-September results. In six months, the share has given around 70 percent returns to its stakeholders.
With a market capitalization of Rs. 278 crores, the share of Frontier Spring Ltd started its today’s trading session on a positive note. Within a few minutes of the opening bell, the share hit a 5 percent upper circuit at Rs. 742.65 apiece.
Such a positive movement in the share was observed after the company announced its Q2 FY24 results. The company’s revenue increased by around 28 percent from Rs. 25.49 crores during the June quarter to Rs. 32.75 crores in the September quarter. In addition to this, the net profit accelerated by 53 percent from Rs.1.86 crores to Rs. 2.85 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue jumped by around 22 percent from Rs. 26.77 crores during Q2 FY23 to Rs. 32.75 crores in Q2 FY24. Furthermore, the net profit was magnified by 78 percent from Rs. 1.60 crores to Rs. 2.85 crores during the same above-mentioned period.
Coming onto the important financial ratios of the company, the return on equity (RoE) declined from 11.84 percent during FY 21-22 to 10.19 percent in FY 22-23 and the Return on capital employed decreased from 15.45 percent to 13.47 percent during the same period.
According to the latest shareholding pattern, Promoters have a 51.76 percent stake in the company and the remaining 48.24 percent is with the Public or Retail Investors.
Headquartered in Kanpur, Frontier Springs Ltd was established in the year 1981. The company manufactures hot coiled springs supplying to Indian Railways, Heavy engineering industries, and OEMs in India and abroad.
Written By Vaibhav Patil
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