Electrosteel Castings shares plunge 8% after sluggish show in Q2 earnings

Shares of Electrosteel Castings plunged 8 per cent at Rs 162.30 a piece on the BSE. Electrosteel Castings share price today fell after the company on Wednesday reported a decline in its profit after tax in the second quarter of financial year 2024-25 (Q2FY25).

 

Electrosteel Castings reported a 11.1 per cent year-on-year decline in net profit for the second quarter of FY25, totaling Rs 155 crore compared to Rs 175 crore in Q2FY24. On a quarterly basis, the profit slipped by 31.3 per cent from Rs 226 crore in Q1FY25.

 

The company’s consolidated total income also fell by 4.6 per cent year-on-year totaling Rs 1,849 crore compared to Rs 1,938 crore in Q2FY24. Sequentially, total income slumped by 9.2 per cent as against Rs 2,036 crore in Q1FY25. 

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 9.3 per cent year-on-year and 23.5 per cent quarter -on-quarter to Rs 289 crore, compared with Rs 319 crore in Q2FY24 and Rs 378 crore in the June quarter of FY25. Ebitda margins decreased 82 basis points (bps) Y-o-Y and 293 bps Q-o-Q to 15.6 per cent from 16.4 per cent in Q2FY24 and 18.5 per cent in Q1FY25.

 

Electrosteel Castings Ltd is involved in the manufacturing of Ductile Iron (DI) pipes, Ductile Iron fittings (DIF), and Cast Iron (CI) pipes. The company specialises in water infrastructure, offering techno-economic solutions for water supply and sewerage systems.

Electrosteel Castings share price history

The company’s stock has outperformed the market year to date as it has risen 47.3 per cent, while gaining 97.9 per cent in the last one year. In comparison BSE Sensex has risen 10.2 per cent year to date and 24.7 per cent in a year. 

 

The company has a total market capitalisation of Rs 10,240.23 crore. Its shares are trading at a price to earnings multiple of 13.07 times and at an earning per share of Rs 13.50. 

 

At 11:15 AM, the stock price of the company was down 6.43 per cent at Rs 165.10 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.45 per cent to 79,584.03 level.