Avantel's Q1FY25 net profits tank 39% QoQ: stock hits 10% lower circuit

Avantel’s shares fall: Share prices of smallcap firm Avantel were locked in a 10 per cent lower circuit at Rs 179.65 per share on the BSE Sensex. By comparison, the benchmark index Sensex was down 0.55 per cent at 80,894 levels. 

This came after the telecom equipment and accessories firm, on Friday reported sluggish quarterly earrings for the April-June quarter of financial year 2024-25 (Q1FY25). 

Avantel registered a decline of 8.75 per cent year-on- year (Y-o-Y) at Rs 7.3 crore in net profits for the June quarter of FY25 versus Rs 8 crore reported in Q1FY24. Sequentially profits fell by more than 39 per cent as the company had recorded a bottomline of Rs 12 crore in Q4FY24. 

The company’s revenue from operations also fell by 24.92 per cent year-on-year to Rs 51.76 crore in the June quarter of FY25, as against Rs 68.94 crore in the corresponding quarter of the previous year. 

Total expenses also decreased by 28.76 per cent at Rs 41.1 crore as compared to Rs 57.7 crore in the year ago period. However, the expenses rose significantly on a quarterly basis, rising 56.2 per cent from Rs 26.3 crore reported in the March quarter of FY24. 

The company’s shares have zoomed 44.4 per cent in the last six months, while soaring 212 per cent in the last one year. It has a total market capitalization of Rs 4,378.85 crore. 

Moreover, Avantel’s share price is currently trading at a price to earnings multiple of 87.57 times with an earning per share of Rs 2.28. 

Avantel is presently engaged in manufacturing of wireless front-end Satellite Communication Embedded systems Signal ProcessingNetwork Management and Software Development and rendering related Customer Support Services and having an in-house R&D facility at Visakhapatnam, Andhra Pradesh.