Shares of this small-cap stock associated with the Cement sector jumped approximately 8 percent in Tuesday’s trading session after the company announced financial results for Q3FY23-24, i.e., for the quarter ended December 2023.
With a market capitalization of Rs 1,220 crores, the stocks of Saurashtra Cement Limited started their trading session on Tuesday at Rs 105.10 and currently trade at Rs 110, gaining approximately 8 percent compared to the previous closing levels of Rs 102.37 apiece.
Such bullish share price movements were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended December 2023.
On a sequential basis, the company reported an increase in its prime business indicators, viz, revenue from operations as well as after-tax profits.
The former rose from Rs 375 crores during Q2FY23-24 to Rs 447 crores during Q3FY23-24, and the latter, keeping the timeframe the same, took a shift from Rs 73 lakhs to Rs 13 crores exhibiting an increase of a whopping 1,681 percent.
The company, on a YoY basis too, reported positive movements in the abovementioned metrics with the operating revenues shifting up marginally from Rs 442 crores during Q3FY22-23 to Rs 447 crores during Q3FY23-24, and the bottom-line numbers, in congruence, transitioning from a loss of Rs 2.80 crores to a profit of Rs 13 crores.
As per the latest shareholding data for the December 2023 quarter, the company’s Promoters hold a 67.09 percent stake followed by the Public (retail) Investors holding a 32.55 percent stake in the company.
During the recent financial period, the company has successfully reduced its debt-to-equity ratio shifting from 0.12 times during FY21-22 to 0.08 times during FY22-23.
Founded in 1956, Saurashtra Cement Limited is an India-based company engaged in manufacturing cement and clinker. Deriving a majority of revenue from domestic operations within India, the company manufactures cement under the brand name ‘Hathi’.
Written by Amit Madnani
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