The shares of one of the leading player in Electronics Manufacturing Services gained 10 percent to an all-time high of Rs 1,715 apiece on Monday morning following the company’s impressive June Quarter financial results.
At 12:36 p.m., PG Electroplast Ltd shares were trading at Rs 1,655 a share on the National Stock Exchange, up Rs 86.70 or 5.60 percent.Company has a market capitalization of Rs 3,803 crore.
According to Company’s exchange filing, the company’s consolidated net profit increased by 106 percent to Rs 33 crore in Q1FY24 as compared to Rs 16 crore in the corresponding quarter of the previous year Q1FY23, while revenue improved remarkably by 26 percent to Rs 678 crore in the latest quarter as compared to Rs 537 crore in the same quarter last year.
In comparison to the previous quarter (Q4 FY 22-23), operational revenue declined 18 by percent from 829 crore in Q4FY23 to 678 crore in Q1FY24,Further net profit declined by 17 percent from 40 crore to 13 crore.
The stock has increased 44 percent in the previous six months and 80 percent in the last year.
The financial metrics of PG Electroplast have significantly improved. For the trailing 12 months ended June 2023, the return on capital employed increased from 19.7 percent to 22.8 percent, and the return on equity increased from 18.8 percent to 24.9 percent.
The product business has been a driving force behind the company’s sales, accounting for 65 percent of total revenue in the first quarter of fiscal year 2024. The AC product industry grew by 52 percent, while the TV and electronics industry grew by 110 percent.
During the quarter, the company’s operating margins have improved QoQ and YoY due cost control, softer commodity prices and operating leverage.
PG Electroplast Limited is in electronic manufacturing services to original equipment manufacturers (OEMs) of consumer electrical devices. It produces and assembles a wide range of consumer electrical components and finished products.
Written by Omkar Chitnis
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