Paramount Communications shares hit upper circuit after strong Q2 results

Shares of Paramount Communications Ltd hit upper circuit on Wednesday after the company announced a strong set of performance for the quarter ended on September 30, 2023. The company board also allotted equity shares against the conversion of warrants to non-promoter investors.

The cable manufacturer reported a 55 per cent jump in the net profit on a year-on-year (YoY) to Rs 19.49 crore in the September 2023 quarter, against a net profit of 12.62 crore in the same quarter previous year, Paramount Communications said in the exchange filing.

The revenue from operations increased 18 per cent YoY in the second quarter of the ongoing financial year at Rs 254.42 crore. Its topline came in at Rs 215.68 crore in the year-ago period. EBITDA for the year surged about 50 per cent to Rs 21 crore for the current quarter, with an operating profit margin of 8 per cent for the three-month ended September 2023.

Shares of Paramount Communications were locked in the buyer's circuit of 5 per cent to Rs 65.75 on Wednesday, commanding a total market capitalization of more than Rs 1,550 crore. The scrip had previously settled at Rs 62.62 in the previous trading session. The stock has rallied about 225 per cent from its 52-week low at Rs 20.25.

Paramount Communications' net profit climbed more than 73 per cent YoY to Rs 34.02 crore for the half year ended on September 30, 2023, compared to a net profit of Rs 19.65 crore in the year ago period. Revenue from operations rose over 23 per cent to Rs 462.98 crore in the April-September 2023 period.

The share allotment committee of the board of directors of the company has allotted 3,46,75,000 equity shares to the warrant holders belonging to non-promoters' category on exercise of warrants, which were issued to them at the price of Rs 21.57 apiece earlier.

Paramount Communications is engaged in manufacturing of Wires and Cables comprising power cables, telecom cables, railway cables and specialized cables. It has widened its portfolio, building on a prestigious clientèle that includes government, institutional and major private sectors.

Also read: Hot stocks on November 8: Vedanta, Suzlon Energy, Zomato, IndusInd Bank and more

Also read: Infibeam, DroneAcharya: These 66 small-cap firms posted over 50% rise in H1FY24 sales