Shares of this smallcap company jumped 5 percent in Friday’s trading session after recording an increase in net profits by 9,304 percent. On a YTD basis, the stock has delivered more than 40 percent returns to its shareholders.
With a market capitalization of Rs. 1,744 crores, the shares of Steel Exchange India Ltd started Friday’s trading session flatter note at Rs. 14.30 compared to its previous close of Rs. 14.20. During the trading session, the shares hit a high of Rs. 15.30, gaining 6 percent and closed the day at Rs. 14.95 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. The revenue increased by 21.78 from Rs. 256.31 crores during the December quarter to Rs. 312.15 crores in the March quarter. In addition, the net profits magnified by 9,304 percent from Rs. 20.94 lakhs to Rs. 19.75 crores during the same period.
Comparing these on a YoY basis, the revenue decreased by 22 percent from Rs. 398.21 crores during Q4FY23 to Rs. 312.15 crores in Q4FY24. On a contrasting note, the net profits showcased a transition from a net loss of Rs. 42.60 crores to Rs. 19.75 crores during the same timeframe.
Looking at the segment-wise revenue split, nearly 98 percent of the company’s total revenue is derived from the steel segment, with the remaining 2 percent originating from the power segment. This delineation underscores the significant contribution of the steel segment to the company’s overall revenue streams.
The company has the largest private integrated steel plant in the two Telugu States, Andhra Pradesh and Telangana. Furthermore, the current manufacturing facilities of the firm are the Integrated Steel Plant (ISP) close to Visakhapatnam and the SMS & Power Unit at Kothapeta.
The ISP has a 2,20,000 MTPA Sponge Iron Unit, 2,50,000 MTPA Steel melt Shop, 2,25,000 MTPA Rolling Mill and a 60 MW Co-generation Power Plant. The SMS and Power Unit has an 11.84 MW gas-based power plant and a 90,000 MTPA Steel Melt Shop.
The company boasts a robust clientele, catering to esteemed organizations such as Mishra Dhatu Nigam, Bharat Dynamics Limited, Bharat Heavy Electricals, Hindustan Petroleum Corporation, Larsen & Toubro, among others.
Incorporated in 1999, Steel Exchange India is the flagship company of the Vizag Profiles Group. The company is engaged in the manufacturing and sale of steel and related products and the generation of power.
Written by Vaibhav Patil
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