This Semiconductor stock, which is engaged in consulting and product development services in Engineering and Product R&D with Offshore Development & Support Centers in India and Overseas, surged upto 14 percent after reporting Q3 results with profit from loss year on year and Rs. 510 crore MoU with Karnataka Government.
Share Price Movement
With a market capitalization of Rs. 1,531.57 Crores, the shares of ASM Technologies Limited were up by 13.68 percent in the day’s trade touching a day’s high of Rs. 1,340 per share.
The stock reiterated from the day’s high and was trading at Rs. 1,318.95 which is 11.90 percent higher than the previous closing price of Rs. 1,178.70 apiece. It has delivered a return of 72 percent which has outperformed the Nifty Index in the past year.
Q3FY25 Financial Highlights
The company’s stock was in focus after reporting financial results for the quarter ending December 2024, ASM Technologies consolidated revenue from operations has increased by 16.19 percent year on year from Rs. 55.71 crores in Q3FY24 to Rs. 64.74 crores in Q3FY25 and increased by 13.70 percent quarter on quarter from Rs. 56.93 crores in Q2FY25.
The consolidated bottom line numbers revealed the company turned from a net loss of Rs. 0.71 crore to a net profit of Rs. 5.19 crore in Q3FY25 on a year-on-year basis. As compared to Q2FY25, the company’s net profit has increased by 113 percent quarter on quarter from Rs. 2.43 crore.
ESDM Investment into Karnataka
The company has recently signed a Memorandum of Understanding (MoU) in the “Invest Karnataka 2025” event with the Karnataka Government for an investment of Rs. 510 crore in the state for Electronic System Design and Manufacturing (ESDM) related Design-Led manufacturing and precision engineering capacity as per the company’s filing. As per the agreement, the company will acquire 10 land acres from the Karnataka Industrial Area Development Board (KIADB) to establish the facility.
Management Commentary
Commenting on the Company’s Investment, the MD of ASM Technologies, Rabindra Srikantan said “This MoU reaffirms ASM Technologies Limited’s’ commitment to Karnataka’s industrial growth and self-reliance.
This expansion will enhance our precision engineering for the electronics, semiconductor, and solar industries, create employment opportunities and promote technological advancements in the region. We are grateful to the Government of Karnataka for their support and look forward to a fruitful collaboration.”
Dividend Announcement
ASM Technologies’ board of directors has declared an Interim Dividend of Rs. 1 per equity share on the face value of Rs. 10 for the FY25. The record date for the dividend is fixed on Monday, 24th February 2025 and the same will be paid on or before 11th March 2025.
Business & Revenue Segments
The company recognizes its revenue from operations from the Services segment which contributed around 85.81 percent and the remaining 14.18 percent from the Manufacturing segment in Q3FY25. The Domestic and Export sales include both Services and Manufacturing in which the geographical diversification is 84 percent and 16 percent respectively for December 2024 quarter.
Ace Investor Stake
Mukul Mahavir Agrawal, an ace investor holds around 6.48 percent of the stake as of December 2024 and the stake remained consistent from 6.48 percent in September 2024.
Company Overview
ASM Technologies established in 1992, offers consulting and product development services with expertise in cutting-edge technologies. Recently it has commenced operations from its two new manufacturing facilities at Dabaspet, Karnataka, and Sriperumbudur, Tamil Nadu. Both facility locations totalling over 55,000 sq.ft., are expected to provide design-led manufacturing operations.
Written By Santhosh S
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