Salasar Techno Q1 PAT at Rs7.26cr; stock dip marginally

Further, the company’s operations were impacted again due to the second wave of COVID-19 during the quarter ended 30 June 2021, yet the company was able to generate profits better than the previous year.

Aug 17, 2021 02:08 IST India Infoline News Service

Salasar Techno Engineering – one of the largest steel fabrication and infrastructure companies in India has reported a consolidated net profit to Rs7.26cr in the quarter ended June 2021. On account of COVID-19 lockdown, the company’s performance in Q1 FY 21 was severely impacted.

Further, the company’s operations were impacted again due to the second wave of COVID-19 during the quarter ended 30 June 2021, yet the company was able to generate profits better than the previous year.

The company has posted net sales of Rs132.8cr in the first quarter of FY22. The company has recorded a 110% YoY growth in net sales as compared to Rs63.2cr posted by the company for the corresponding period last year.

The stock is currently trading at Rs306 down by Rs2.25 or 0.73% from its previous closing of Rs308.25 on the BSE.

Commenting on the company’s financial performance, Mr. Shashank Agarwal- M.D of Salasar Techno said, “Despite COVID-19 restrictions, it has been a remarkable quarter for the company. There were several challenges faced by the company during the second wave of the pandemic. However, we managed to tackle these challenges diligently and recorded revenue of Rs. 132.8 Crore.”

The EBITDA of the company grew to Rs. 14.7 Crore in Q1 FY 22 from Rs. 4.8 Crore in Q1 FY 21, recording growth at 206% YoY. The company posted an EBITDA margin of 11.1% in Q1 FY 22 as compared to 7.6% in Q1 FY 21.

Additionally, the Profit After Tax (PAT) for Q1 FY22 stood at Rs. 7.3 Crore, rising from Rs. 0.2 Crore in Q1 FY 2021. Additionally, the company recorded an increase in the PAT margin at 5.53% in FY 2022 as compared to 0.32% in FY 2021.

Even after witnessing the impact of the pandemic on business operations, the company has received new work orders worth Rs. 356.47 Crore in Q1 FY 22. In addition, the company always has in-hand monthly orders of telecom towers of approx. Rs 25 to 30 Crores.

“Considering robust inflow of monthly orders, we expect a strong financial performance of the company in the upcoming quarters. Additionally, our strategic roadmap will help us grow consistently and profitably going forward,” he added.

Manufacturing operations including steel structures and others contributed 67% to the company’s revenue followed by EPC – Power Transmission contributing 18% and Railway Electrification contributing 15% to Q1 FY 22 revenue.

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