Kolkata, January 31, 2025
Electrosteel Castings Limited (NSE: ELECTCAST, BSE: 500128), a leading ductile iron pipe manufacturer, has announced its unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024.
Key Financial Highlights (₹ in lakhs)
| Particulars | Q3 FY25 (31-Dec-24) | Q2 FY25 (30-Sep-24) | Q3 FY24 (31-Dec-23) | 9M FY25 (31-Dec-24) | 9M FY24 (31-Dec-23) |
|---|---|---|---|---|---|
| Revenue from Operations | 1,77,666.84 | 1,86,938.01 | 1,75,488.00 | 5,61,637.24 | 5,47,801.13 |
| Other Income | 3,920.68 | 2,277.57 | 1,754.88 | 8,446.39 | 10,224.09 |
| Total Income | 1,81,587.52 | 1,89,215.58 | 1,77,242.88 | 5,70,083.63 | 5,58,025.22 |
| EBITDA | 19,516.14 | 17,487.14 | 17,820.67 | 60,514.89 | 64,280.50 |
| Finance Costs | 4,464.90 | 5,312.05 | 4,978.68 | 12,620.91 | 14,814.85 |
| Depreciation | 3,673.87 | 2,959.81 | 2,779.59 | 10,466.88 | 11,432.34 |
| Profit Before Tax | 9,641.07 | 8,452.20 | 8,280.50 | 30,614.12 | 35,684.21 |
| Net Profit (PAT) | 5,769.95 | 8,459.73 | 8,452.20 | 20,648.49 | 29,505.12 |
| EPS (₹) - Basic | 2.51 | 4.42 | 4.24 | 8.62 | 12.29 |
- Revenue increased by 1.24% compared to Q3 FY24.
- EBITDA showed a moderate improvement, up 9.5% QoQ.
- PAT declined due to higher finance costs and ongoing litigation-related expenses.
Segment-Wise Performance
The company operates primarily in the pipes and fittings segment. All financial activities revolve around this core business.Key Corporate Updates
Legal & Regulatory Developments
- Coal Block Compensation Dispute:
- The company continues to pursue a compensation claim of ₹1,54,944.48 lakhs related to the cancellation of its Parbatpur coal block.
- Awaiting a decision from the Nominated Authority and Ministry of Coal.
- JSW Steel has taken over physical possession of the coal block, and negotiations are ongoing for asset utilization.
- Investment in ESL Steel Limited (ESL):
- Pledged equity shares in ESL were set aside by the Calcutta High Court, and the case is still pending resolution.
- Mortgage Dispute at Elavur Plant:
- The land mortgage dispute is pending before the Madras High Court.
- Asset Reconstruction Company (ARC) has taken symbolic possession, but Electrosteel has challenged the assignment.
Strategic Expansion
- Acquisition of Singardo International Pte. Ltd.:
- Electrosteel completed the acquisition on October 22, 2024, for SGD 64,42,450 (₹ 4,148.97 lakhs).
- The valuation has been finalized, and integration into Electrosteel’s business is ongoing.
Management Commentary
Mr. Umang Kejriwal, Managing Director of Electrosteel Castings Limited, stated:"Despite macroeconomic challenges, we have maintained our revenue growth trajectory and strategically expanded through acquisitions. We remain committed to resolving our ongoing legal matters and expect clarity on the coal block compensation soon. Our strong order book positions us well for future growth."
Outlook & Investor Takeaways
- Revenue growth remains stable, driven by steady demand for ductile iron pipes.
- Legal proceedings over coal block compensation and mortgage disputes may impact short-term liquidity.
- Acquisition of Singardo International is expected to boost international expansion.
- Cost optimization and debt management will be key focus areas for improving margins.