Nelco Reports Strong Q2FY24 Results

Nelco Reports Strong Q2FY24 Results

VoM News Desk | October 16, 2023 | 07:31 PM IST | Breaking News | Follow on Google News

Nelco Reports Strong Q2FY24 Results

Nelco Reports Strong Q2FY24 Results

Nelco, a subsidiary of the Tata Group, has posted its financial results for Q2FY24, showing strong performance in several key areas.

Financial Highlights:

1. Consolidated Net Profit: Nelco reported a consolidated net profit of ₹5.69 crore for the September quarter, reflecting a robust increase of 27.29% compared to the ₹4.47 crore in the same period last year. The company had previously recorded a net profit of ₹5.73 crore in Q1FY24.
2. Revenue: Consolidated revenue from operations for Q2FY24 reached ₹76.65 crore, indicating a slight improvement over the ₹75.44 crore reported in the same period in 2022.
3. Operating Profit: The operating profit showed a 2% year-on-year increase, reaching ₹13.91 crore.
4. EBITDA Margin: The EBITDA margin remained relatively stable both on a quarter-on-quarter and year-on-year basis, at 18.68%.
5. Finance Cost: Nelco managed to reduce its finance cost during the quarter, which decreased to ₹1.68 crore compared to ₹1.93 crore in the same period last year.
6. Earnings per Share: Earnings per share for the September quarter (Q2FY24) improved to ₹2.49, up from ₹1.96 in the same quarter of the previous fiscal year.

Nelco operates in the field of providing domestic satellite communication services to closed user group (CUG) networks via satellite systems within the territorial boundaries of India. The company holds a VSAT License granted by the Department of Telecommunications, Government of India.

Share Performance:

Over the past three years, Nelco’s shares have provided substantial returns to shareholders. The share price surged from ₹178.20 per share to ₹794.25 per share during this period, marking an impressive 345% increase. Although the shares experienced a nearly 40% decline from their all-time high of ₹1,090 per share in September of the previous year, they reversed their downward trend in March and have since maintained a bullish trajectory.

Nelco’s strong financial results in Q2FY24 underscore its ability to navigate market challenges and deliver profitable outcomes, positioning the company for continued growth in the future.

VoM News Desk

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