The shares of a leading electronic firm fell by 16.3 percent after the company reported a net loss of Rs 2.75 crores for the year ended 31st March 2024.
At 2:30 p.m., On Thursday’s trading session, the shares of Centum Electronics Ltd were trading at Rs 1,723 a piece, down by 11.42 percent on the National Stock Exchange. The company has a market capitalization of Rs 2,217 crores.
Looking into the company’s financial performance, Centum Electronics Ltd’s net profits decreased by 126 percent from a profit of Rs 25.7 crore in Q4FY23 to a net loss of Rs 6.89 crore in Q4FY24. Additionally, its revenues decreased by 7.21 percent from Rs. 305 crore in Q4FY23 to Rs. 283 crore in Q4FY24.
From the full year standpoint, the company reported a net loss of Rs 2.75 cores in FY2023-24 from a net profit of Rs 6.69 in FY2022-23. However, its revenues increased by 18.5 percent from Rs. 884 crores in FY2022-23 to Rs. 1048 crore in FY2023-24.
The shares of this company generated an overall return of 111 percent over the past one year and 17.5 percent over the past 6 months.
The reason for the company’s net loss was due to its investments made in Cenlum Electronics UK Limited, which in turn has made investments in Centum T&S Group SA (formerly known as Centum Adclal Group SA).
Centum T&S Group SA and its underlying subsidiaries have incurred losses leading to erosions of networth and the carrying value of the investment of Rs 108 crores continues to be higher than the net worth of Centum T&S Group SA.
As of March 2024, its shareholding pattern stood at 58.79 percent for promoters, 33.08 percent for the public,7.76 percent for domestic institutional investors, and 0.37 percent for foreign institutional investors.
The company has future plans to expand its customer portfolio domestically and internationally. Additionally, they have plans to Identify opportunities in the “New space” global supply chain industry along with plans to Enhance solutions towards Industry 4.0 for increased digitization and automation.
The company also recommended a final Dividend of Rs.3 (i.e 30 percent) per equity share of Rs.10 each on the fully paid-up equity share capital of the Company.
Founded in 1993, Centum Electronics Limited (Centum) is one of the largest Electronics System Design and Manufacturing (ESDM) companies in India. The company offers various services in the design and manufacturing of systems, for mission-critical products in industries such as Defence, Space, Aerospace, Industrial, Transportation, and Medical.
Written by Zahal
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