Shares of this microcap company jumped 3 percent after the renewal of the contract with the Indian Institute of Science. In six months, the shares have delivered more than 80 percent to its shareholders.
With a market capitalization of Rs. 109 crores, the shares of East West Holdings Ltd started Wednesday’s trading session on a higher note of Rs. 8.67 compared to its previous close of Rs. 8.51. The shares hit a high of Rs. 8.89, gaining around 3 percent and are currently trading at Rs. 8.56 apiece.
Such a positive movement was observed after the company in an exchange filing announced that through its wholly-owned Subsidiary (WOS) East West Freight Carriers Limited it had successfully renewed the custom House Agents (CHA) service contract with The Indian Institute of Science (IISC), Bengaluru, which is ranked as India’s top University and Research institution.
Furthermore, the company mentioned that this renewed Custom House Agents (CHA) service contract with IISC is expected to generate Rs.18 to 22 crores of revenue for the company.
Looking at the company’s financial statement, the revenue decreased by 21 percent from Rs. 54.87 crores in the June quarter to Rs. 43.43 crores during the September quarter. On a contrasting note, the net profits magnified by 200 percent from Rs. 3 lakhs to Rs. 9 lakhs during the same timeframe.
The company gets revenue from multiple sources, primarily through Air export sales which contribute 68 percent of the revenue. Furthermore, the company gets 9 percent revenue from Air Import sales, 13 percent from Sea export sales, and 9 percent of revenue inflows from Sea import sales.
Headquartered in Mumbai, East West Holdings was incorporated in 1981. The company’s international freight and trade network offers a single-window solution to manage freight. It offers customized logistics solutions with access to an extensive agent network of air, ocean, rail, or road transport facilities.
Written By Vaibhav Patil
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