Shares of this small-cap company jumped around 5 percent in Tuesday’s trading session after reporting an increase in net profits by 154 percent YoY. The shares have delivered a multibagger return of 267 percent to its shareholders in one year.
With a market capitalization of Rs. 10,257 crores, the shares of Electrosteel Castings Ltd started Tuesday’s trading session on a higher note at Rs. 169.50 compared to its previous close of Rs. 165.90. During the trading session, the shares hit a high of Rs. 174, gaining around 5 percent and are currently trading at Rs. 172 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased by 7.21 percent from Rs. 1,869.38 crores during the December quarter to Rs. 2,004.25 crores in the March quarter. On a contrasting note, the net profits decreased by 14 percent from Rs. 263.43 crores to Rs. 227.14 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 7 percent from Rs. 1,972.37 during Q4FY23 to Rs. 2,004.25 crores in Q4FY24. In addition, the net profits magnified by 154 percent from Rs. 89.49 crores to Rs. 227.14 crores during the same timeframe.
Additionally, the company’s board of directors have recommended a final dividend of Rs. 0.90 (90 percent) per Equity Share of the face value of Rs. 1 each for the financial year ending 31 March 2024, to the shareholders of the company.
The DI Pipes volumes stood at 1.96 Lakh MT in Q4FY24 as against 1.93 Lakh MT in Q4FY23 and 7.47 Lakh MT in FY24 as against 7.15 Lakh MT in FY23. Further, in FY24, exports constituted 15 percent of the DI Pipe volumes.
The company has planned a capital expenditure (Capex) of Rs 650 crores aimed at bolstering capacity to 8,95,000 TPA (tons per annum) in FY25. As of FY24, approximately Rs. 390 crores has been allocated by the company towards Capex.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.45 percent and a return on capital employed (RoCE) of 9.76 percent for the period spanning FY22-23. Moreover, during FY22-23 the net profit margin was at 4.35 percent.
Headquartered in Kolkata, Electrosteel Castings was incorporated in 1955. The company is engaged in the business of manufacturing Ductile Iron (DI) Pipes, Ductile Iron Fittings (DIF), Cast Iron (CI) Pipes and produces and supplies Pig Iron.
Written By Vaibhav Patil
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