Stock jumps more than 8% after company reports 62,750% increase in net profit

Shares of Schneider Electric Infrastructure Ltd. (SEIL) surged 8% on Wednesday to Rs 205.55 apiece from the previous close price of ₹ 188.50. One of the probable reasons for the stock price to surge today is the company’s recent announcement of strong Q4 FY 22-23 earnings. 

The company reported a 62750 percent increase in net profit at ₹44 crores for the quarter that ended March 31, 2023, compared with ₹0.07 crore in the year-ago period, and a 20.5 percent increase in sales from  ₹ 340 crores to  ₹ 410 crores for the same time frame.

Schneider Electric Infrastructure is engaged in the business of manufacturing, designing, building, and servicing technologically advanced products and systems for electricity networks, and  manufactures a wide range of products that includes Transformers, Power Transformers, Switchgears, etc.

Having a quick walkthrough of the financials, their operating revenues reduced from ₹ 574  crores in Q3 to ₹ 410 crores in Q4. Similarly, Having a YoY comparison of the metrics, the revenues significantly increased from ₹  1,530 crores during FY 21-22 to ₹ 1,777 crores in FY 22-23.

The net profits of the company, during the previous quarter, increased from ₹43  crore in Q3 to ₹44 crore in Q4. For YOY comparison,  PAT numbers have increased from ₹ 28 crores during FY 21-22 to  ₹ 124 crores in FY 22-23.

The basic profitability ratios exhibiting operational efficiencies such as return on assets (ROA) and return on capital employed (ROCE) showed an upward trend in this financial year. ROA moved from -0.08 percent during FY 21-22 to 2.36 percent in FY 22-23 and ROCE, keeping the time frame the same, moved from 14.65 percent to 17.20 percent.

In the past year, the stock has jumped around 86.08 percent, ranging from  ₹ 109.90 to the current price levels.  

According to the latest data pertaining to the shareholding pattern, the promoters hold a 63.85 percent stake, and the public holds a 22.75  percent stake in the company for FY 22-23.

Written by Omkar C

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