The shares of this stainless steel manufacturer fell by 2.45 percent after the Commissioner of CGST & Central Excise imposed a penalty of Rs 14.73 crores.
With a market capitalization of Rs 289.99 crores, Panchmahal Steel Ltd., On Monday, the company shares were trading at Rs 152.00 apiece, a decrease of 2.45 percent from the previous close price.
In accordance with the company filing, Panchmahal Steel Ltd. was hit with two penalties totaling Rs 14.73 crores by the Commissioner of CGST & Central Excise for two different disputes: one related to the disallowance of CENVAT credit obtained on SS scrap, and the other to the disallowance of CENVAT credit obtained on raw materials.
Looking into the company’s performance, Panchmahal Steel Ltd’s revenue increased by 10 percent from Rs 108.12 Crore in Q2FY23 to Rs 119 Crore in Q2FY24. During the same period, net profit increased by 104 percent from a loss of Rs 3.49 crore to Rs 0.17 crore.
Compared to the previous year’s Rs. 577.61 crores, the company’s total income for the current year was Rs. 490.05 crores. During the year, the Company’s Profit after Tax was Rs. 1.38 crores, compared to Rs. 58.58 crores the year before.
Panchmahal Steel Ltd’s recent shareholding pattern, The Promoters of the company owns 74.90 percent while Retail shareholders own a 21.16 percent stake in the company and domestic Institutional Investors own a 21.16 percent stake.
By emphasizing value-added products and growing its customer base, the company has developed the resilience required to successfully navigate obstacles at various stages of the business cycle.
Manufacturing stainless steel long products, including bars, rods, and wires, is the focus of Panchmahal Steel Ltd. These products are used in the engineering, building and infrastructure, automotive, railroad, consumer durables, food processing, and dairy industries.
Written by:- Abhishek Singh
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