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Tag: H1 FY25

  • Paramount Communications soars with 46.1 per cent growth YoY in Q2 FY25

    Paramount Communications soars with 46.1 per cent growth YoY in Q2 FY25

    Mumbai: In a world that prides itself on wireless connectivity, the humble cable remains indispensable, quietly powering our digital lives and delivering seamless connections. As another quarter dawns, Paramount Communications Ltd., a stalwart in India’s cables and pipes industry, emerges with a balance sheet that shines just as brightly as its sturdy wires. The company’s Q2 FY25 financial results reveal a story of resilience and growth, with gains in revenue and profitability that underscore its strategic prowess and market strength. Against the backdrop of growing demand in the telecommunications, energy, and infrastructure sectors, Paramount’s latest performance showcases the results of steady expansion and commitment to value creation.

    For the quarter ending 30 September 2024, Paramount posted a revenue from operations of Rs 35,210.10 lakh, a notable 28.3 per cent increase from Rs 27,452.30 lakh in Q2 FY24. In the first half of FY25, revenues totaled Rs 67,694.55 lakh, representing a remarkable 46.1 per cent growth year-over-year (YoY). This robust expansion reflects heightened demand for Paramount’s products, particularly in the expanding cable sector, which contributed significantly to the earnings momentum. Cables remain Paramount’s largest revenue driver, contributing Rs 66,541.68 lakh over the half-year period, up from Rs 46,082.64 lakh during the same timeframe last year.

    The company’s pipes segment, though smaller in scale, also exhibited a compelling growth rate. Revenue here reached Rs 1,260.98 lakh in H1 FY25, a nearly six-fold increase over the Rs 215.31 lakh reported in H1 FY24. This sector growth is driven by Paramount’s increased penetration into infrastructure and irrigation projects, which are anticipated to remain robust revenue contributors for the foreseeable future.

    Paramount’s profitability surged alongside its revenue growth. In Q2 FY25, the company’s profit before tax (PBT) reached Rs 2,911.32 lakh, up from Rs 1,950.12 lakh in Q2 FY24, marking a 49.3 per cent increase. Paramount’s net profit for Q2 FY25 also rose by an impressive 40.8 per cent, closing at Rs 2,033.11 lakh compared to Rs 1,948.92 lakh in the previous fiscal year.

    Additionally, Paramount’s margin enhancements reflect the company’s ongoing efficiency measures and prudent cost management. The cost of materials consumed in Q2 FY25, though rising due to increased production volumes, remained well-managed, totaling Rs 28,845.71 lakh. Meanwhile, operating expenses such as finance costs were reduced to Rs 170.20 lakh, showcasing an ability to maintain financial discipline amidst scaling operations.

    A closer look at Paramount’s balance sheet shows a robust position with total assets reaching Rs 83,041.21 lakh as of 30 September 2024, up from Rs 68,540.52 lakh in the previous year—a 21.2 per cent increase. Key non-current assets like property and equipment saw a strong increase, with capital investment in plant and equipment growing to Rs 16,268.12 lakh, reflecting Paramount’s commitment to expanding its production capabilities.

    Equity shares also increased from Rs 4,773.70 lakh in September 2023 to Rs 6,098.70 lakh in September 2024, largely attributed to strategic equity issuance and the conversion of equity share warrants. Notably, the company’s equity base expanded by 54.5 per cent over the past year, strengthening Paramount’s long-term financial foundation. Total borrowings, on the other hand, were reduced significantly, reflecting a strategic focus on improving the capital structure.

    Paramount’s cash flow statement underscores the company’s operational resilience. Cash from operating activities (CFO) reached Rs 5,687.33 lakh in H1 FY25, a substantial turnaround from the previous year’s cash outflow of Rs 3,491.53 lakh. The improvement is mainly due to better working capital management, with receivables turnover reducing from prior levels.

    Further investments in the business, including a purchase of property and equipment totaling Rs 2,688.19 lakh, highlight Paramount’s commitment to enhancing manufacturing capabilities. Despite these investments, Paramount’s financial strategy enabled it to maintain positive cash flow, signalling preparedness for future growth.

    The results affirm Paramount Communications Ltd.’s strategic growth trajectory, supported by a balanced approach to expansion and operational efficiency. As the cables and pipes markets continue to grow, the company appears well-positioned to leverage its improved capacity and sectoral demand. Paramount’s focus on capturing rising demand across telecommunications, energy, and infrastructure sectors has paid off, with impressive gains in both top-line and bottom-line figures. Looking forward, the company’s expanded production capabilities and reduced debt load place it favourably for sustained growth in these booming sectors.

  • Bharat Electronics achieves 39 per cent profit growth in H1 FY25

    Bharat Electronics achieves 39 per cent profit growth in H1 FY25

    Mumbai: Bharat Electronics Limited (BEL), India’s Navratna defense PSU, continues its growth trajectory, reporting robust results for the first half of FY25. A strategic focus on defense innovations has pushed BEL’s performance to new heights, with a substantial increase in profit and a healthy order book. BEL’s success mirrors the ongoing demand for advanced defense technologies in India’s evolving security landscape.

    In the first half of FY25, BEL reported a turnover of Rs 8,530.43 crore, a 15.83 per cent increase over the Rs 7,364.82 crore recorded during the same period last year. This surge in revenue is credited to the rise in domestic defense spending and BEL’s execution of high-value contracts. A deeper dive into the second quarter reveals that BEL achieved a turnover of Rs  4,425.29 crore, up from Rs 3,918.13 crore in the previous year, reflecting a growth rate of over 12.9 per cent.

    Profit-wise, BEL saw a substantial increase, with its Profit Before Tax (PBT) for the first half of FY25 reaching Rs 2,488.22 crore, marking a 40.05 per cent growth from the Rs 1,776.69 crore reported last year. This robust growth in profitability underscores BEL’s strong market position and operational efficiency. The second quarter alone recorded a PBT of Rs 1,450.88 crore, a 35.3 per cent jump from the Rs 1,072.94 crore seen in Q2 FY24.

    Profit After Tax (PAT) similarly demonstrated impressive gains, with BEL posting Rs 1,867.41 crore for the first half of FY25, up by 39.03 per cent compared to Rs 1,343.18 crore in the corresponding period of the previous year. In Q2 FY25, PAT stood at Rs 1,091.27 crore, a notable increase from Rs 812.34 crore in the same quarter last year.

    Adding to this robust performance, BEL’s order book as of 1 October 2024, was valued at Rs 74,595 crore, affirming the company’s strong market position and promising future cash flows. BEL’s strategic push in research and development and its growing portfolio of defense technology solutions are key drivers of this solid order pipeline.

    With defense spending set to rise, BEL’s growth trajectory and financial resilience position it as a vital contributor to India’s self-reliant defense sector. The company’s performance in H1 FY25 exemplifies how strategic investments in technology and strong execution can yield significant returns.