Centum Electronics hits new high; zooms 48% in 4 days on strong Q4 results

As on March 31, 2023, Centum had a strong order book position of Rs 1,538 crore as compared to Rs 1,090 crore at the end of the previous financial year 2021-22

Shares of Centum Electronics (Centum) rallied 17 per cent to hit a new high of Rs 1,200 on the BSE in Thursday’s intra-day trade, extending gains of last three sessions after the company reported strong March quarter (Q4FY23) earnings and healthy order book position. The stock of the industrial products company has zoomed 48 per cent in the last four trading days.

Centum is one of the largest Electronics System Design and Manufacturing (ESDM) companies in India. The company is offering entire spectrum of design services and manufacturing of systems, subsystems for mission critical products in defence, space, aerospace, industrial, transportation and medical sectors.

The company has three business segments - Electronic Manufacturing Services (EMS) segment, which makes up for 39 per cent of total revenue, Engineering R&D (ER&D) Services (32 per cent) and Build-To-Specification (BTS) (29 per cent).

In Q4FY23, Centum reported a consolidated profit after tax at Rs 25.8 crore, against a loss of Rs 6.4 crore in the year ago quarter.

Consolidated Revenue from operations in Q4 grew 60 per cent quarter-on-quarter (QoQ) and 35 per cent year-on-year (YoY) to Rs 316.3 crore due to better performance from all business units. Delivery of certain long gestation projects in the BTS Space segment was a major contributor to Q4 revenue.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 improved significantly by 213 bps to 15.9 per cent due to higher revenue as well as better mix from BTS.

As on March 31, 2023, Centum had a strong order book position of Rs 1,538 crore as compared to Rs 1,440 crore at the end of December 2022 quarter and Rs 1,090 crore at the end of previous financial year 2021-22.

The company said the healthy order book in hands has largely driven by new business from new and existing customers in EMS. The company further said its key focus is on increasing the order book in BTS segment in FY24.