EMS stock engaged in the business of an integrated Electronic Manufacturing Services company with end-to-end capabilities in box-build solutions delivery, hit a 5 percent upper circuit after reporting net profit growth of 265 percent year over year.
Price Movement
Avalon Technologies Limited‘s stock in Thursday’s session touched a day’s high of Rs. 732.95 per share up by 5 percent. The stock stayed in the upper circuit limit which is 5.00 percent higher than the previous closing price of Rs. 698.05. It has delivered a return of around 54 percent in the past year and has outperformed the Nifty Index in the same period.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 280.85 crore which increased by 31.07 percent year on year, from Rs. 214.27 crore in Q3FY24 and a 2.12 percent increase from Rs. 275.01 crore in Q2FY25. Their net profit increased by 264.90 percent year on year, from Rs. 6.57 crores in Q3FY24 to Rs. 23.98 crores in Q3FY25. Quarterly, the profits increased by 37.23 percent from Rs. 17.48 crore.
The Gross Margins for the Q3FY25 stood at 37.3 percent an increase of 48 bps return from 36.8 percent as of Q3FY24. Likewise, the PAT margins grew from 3.00 percent to 8.2 percent for the current quarter year-on-year basis.
Business Segments
As per the recent December 2024 results, the company recognizes its revenue from the Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable, and wire harness as its sole operating segment.
They earn around 42 percent of the revenue domestically and the remaining 58 percent from the US Market. 88 percent of the manufacturing takes place in India as of 9MFY25. Further, 46 percent of the revenue comes from Box Build in the same period.
Order Book
The company has an order book of approximately Rs. 1,594 crore as of 31st December 2024 which saw a year-on-year increase of 25 percent from the previous order book value of Rs. 1,275 crore in Q3FY24.
Company Overview
Avalon Technologies was founded in 1999. It is a multi-faceted manufacturing company that specializes in end-to-end electronic manufacturing services which includes design, PCB assembly, and production for various industries.
Written by Santhosh S
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