The stock of a company specializing in the manufacturing, supplying, erecting, testing, and commissioning of power and distribution transformers reached a 5 percent upper circuit limit in today’s trading session. This increase comes after the board of directors announced plans to consider setting up a subsidiary in the UK to expand its presence in the European markets.
Price Action
On Tuesday, Marsons Ltd’s share price peaked at Rs.332.70 during intraday trading, marking a 5 percent increase from its previous close of Rs.316.90 per share. Over the last five trading sessions, the stock has surged by more than 22 percent following strong quarterly performance.
Year-to-date, the stock has generated remarkable returns exceeding 4,000 percent, and over the past five years, it has delivered an astounding 12,000 percent return.
Reason for the Rise
The strong upward trend in Marson Ltd’s stock price followed the release of robust quarterly results and the company’s expansion plans.
The Board of Directors will meet to review and approve various matters, including the proposal to establish a subsidiary in the United Kingdom to enhance our presence in the European market by creating a base for selling our products in the UK and Europe. This move is expected to boost revenue opportunities and strengthen our competitive position in the region.
Q2FY25 Results
Revenue from operations of Marsons surged by 2,040 percent year-over-year, increasing from Rs.1.8 crores in Q2FY24 to Rs.38.51 crores in Q2FY25. Quarter-over-quarter, revenue grew by 29 percent, rising from Rs.29.87 crores in Q1FY25 to Rs.38.51 crores in Q2FY25.
Net profit experienced a remarkable increase of 1,550 percent year-over-year, climbing from Rs.45.27 lakhs in Q2FY24 to Rs.7.46 crores in Q2FY25.
On a quarter-over-quarter basis, net profit grew by 43 percent, up from Rs. 5.23 crores in Q1FY25 to Rs. 7.46 crores in Q2FY25. However, the net profit margin decreased from 23.57 percent in Q2FY24 to 18.52 percent in Q2FY25.
Manufacturing Capacity
Marsons Limited specializes in the manufacturing, supplying, erecting, testing, and commissioning of power and distribution transformers, with capacities ranging from 10 KVA to 160 MVA at 220 kV class.
The company’s manufacturing facility is located in Kolkata and covers an area of 35,000 sq. m., featuring advanced infrastructure capable of producing power transformers up to 160 MVA at 220 kV class. Additionally, the plant includes a fully equipped laboratory designed to conduct all necessary routine tests for various ratings of power transformers within this range.
About the Company
Marsons Ltd is a leading Indian manufacturer of electrical transformers. The company’s product range includes distribution transformers, power transformers, furnace transformers, unitized transportable substations (USS), dry-type transformers, cast resin transformers, solar transformers, and instrumental transformers.
Marsons Ltd serves a diverse customer base, including major companies such as ABB, CESC, TATA, BHEL, Larsen & Toubro, Sterling & Wilson, Siemens, and NTPC.
Written by – Siddesh S Raskar
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