This recently listed stock tanks 20% on weak Q3; down 25% from issue price

Concord Enviro share price hit a new low of Rs 523.05, down 20% on the BSE, after the company reported a consolidated net loss of Rs 8.56 crore in Q3FY25

Concord Enviro Systems share price hit a new low of Rs 523.05 as it tanked 20 per cent on the BSE in Friday's intraday trade. There were no buyers seen on the counter in the stock markets today after the company reported a weak set of numbers for the quarter ended December 2024 (Q3FY25).

 

Till 12:29 PM, a combined 1.95 million equity shares had changed hands and there were pending sell orders for another 60,000 shares on the NSE and BSE. In comparison, the BSE Sensex was down 0.62 per cent at 75,666.

 

Currently, Concord Enviro Systems is trading 25 per cent below its issue price of Rs 701 per share. It has plunged 39 per cent from its record high level of Rs 859.95, touched on its market debut day i.e. December 27, 2024.

 

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For Q3FY25, the company reported a consolidated net loss of Rs 8.56 crore as against a profit after tax (PAT) of Rs 18.58 crore in Q3FY24 and Rs 17.3 crore in Q2FY25. Revenue from operations remained flat at Rs 123 crore for the quarter.

 

For the nine months period, from April to December (9MFY25), the company's PAT declined 67.4 per cent year-on-year (Y-o-Y) to Rs 4.36 crore due to higher expenditure. The waste management company had posted a net profit of Rs 13.38 crore in the corresponding period of previous fiscal (9MFY24). However, revenue from operations jumped 30.6 per cent to Rs 387.4 crore from Rs 296.6 crore.

 

Revenue from operations increased by 31 per cent Y-o-Y, primarily driven by growth in Systems & Plants revenue.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) margin decreased to 8.67 per cent in 9MFY25 from 16.33 per cent in 9MFY24. The company said Ebitda and PAT margins were impacted due to forex loss in Q3 given the current volatility in forex market (Pesos vis-à-vis Dollar) and freight cost increase for exports.

 

As on December 31, 2024, Concord Enviro Systems had an order book of Rs 546 crore, of which 55 per cent or Rs 301 crore was from international.

 

Concord Enviro Systems is a global water and wastewater treatment and reuse solutions provider, including zero-liquid discharge (ZLD) technology. The company offers in-house solutions across the entire value chain, including design, manufacturing, installation, operation and maintenance (O&M), and digitalization, such as IoT. The company provides integrated wastewater treatment and zero liquid discharge (ZLD) solutions, focusing on energy optimization and recovery to aid industries in achieving water conservation and sustainability goals.

 

The company exports its solutions to North America, Latin America, Africa, the Middle East, and Southeast Asia and has a large customer base of 377 customers worldwide.

 

The company's order book is subject to cancellation, modification or delay, which may materially and adversely affect their business, prospects, reputation, financial condition and results of operation. They are exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials, receivables from their foreign projects and their trade receivables, which may adversely affect their results of operations, financial condition and cash flows, Canara Bank Securities had said in its IPO note.

 

The company is expecting good revenue visibility in future due to strong pipeline of orders from Diageo and CBG orders. However, improving execution timelines and reducing dependency on imports and Diageo by looking for business across the globe will be crucial for long-term scalability, sustainability and efficiency, the brokerage firm had said.