Hind Rectifiers surges 16%, hits new high on strong Q2 results

Shares of Hind Rectifiers surged 16 per cent to hit a new high of Rs 219 in the early morning deals on the BSE on Wednesday after the company reported a robust earnings for July-September quarter (Q2FY20).

The company’s operating profit (EBITDA) more-than-doubled to Rs 13.47 crore in Q2, as against Rs 5.57 crore in the corresponding quarter of the previous fiscal. Net sales grew 40 per cent year-on-year (YoY) at Rs 83.18 crore during the quarter. Net profit increased an over three-times from Rs 2.35 crore to Rs 7.52 crore.

Hind Rectifiers is engaged in designing and manufacturing industrial power electronics and power conversion equipment.

The management said the core operations have helped in increasing both operating revenue and EBITDA (earnings before interest, tax, depreciation and amortisation). The company will continue to augment the full utilisation of facilities, to provide innovative solutions and continue to maintain growth momentum, it added.

In the first half (April-September) of financial year 2019-20, the company reported profit before tax (PBT) of Rs 18.05, surpassing the performance of entire financial year of 2018-19 PBT of Rs 16.65 crore.

In the past three months, the stock of Hind Rectifiers has outperformed the market, rallying 68 per cent, as compared to a nine per cent rise in the S&P BSE Sensex.

At 09:39 am, the stock was up 13 per cent at Rs 213, against a 0.19 per cent gain in the benchmark index. The trading volumes on the counter jumped an over five-fold with a combined 269,323 shares changing hands on the BSE and NSE.