Salasar Techno Q2 Results FY 2024-25: Earnings Growth, Stock Performance & Future Outlook

Salasar Techno Engineering, a leading construction and engineering firm, has announced its Q2 earnings for FY 2024-25.

Salasar Techno Q2 Results FY 2024-25: Earnings Growth, Stock Performance & Future Outlook

Salasar Techno Engineering is one of the most prominent construction and engineering businesses in the country. The company has released its Q2 result for FY 2024-25 today. The company has reported minimal rise in revenue at Rs 276.38 crore. The revenue was at Rs 275.25 crore during the same quarter of last year. The bottom-line of the company stood at Rs 8.92 crore. The expense of the company has risen during this quarter to Rs 266.65 crore.

The steel structures business saw the company go in with a consolidated revenue take-home at Rs 174.08 crore against Rs 199.27 crore for the same period last fiscal. On the other hand, consolidated revenues of the EPC projects business rose by over 20 per cent to Rs 108.4 crore as against Rs 88.14 crore. This is largely buoyed by telecom, energy, and railways projects, which form one of the mainstay pillars of Salasar Techno’s portfolio.

Even now, the company is at a prime position in the infrastructure development of various sectors in many areas and offers its services in the manufacture of steel structures and EPC projects. It had assets worth Rs 1,422 crore as of 30th September 2024.

Salasar Techno Stock Performance

Salasar Techno shares had come out with a Q2 result that was positive but the shares traded in red on Wednesday at Rs 17.30 per share on the BSE. The stock has been a great performer for the investors as it has yielded more than well over the years. The stock has registered 85% growth in the last one year and 195% and 222% in the last two and three years respectively. The stock more than tripled from around 1,600% in five years, thereby indicating large long-term prospects.

It has issued bonus shares to its shareholders in February 2024 at a 4:1 ratio and also forms part of the BSE SmallCap index. That means investors were consequently given four additional shares for every single share they held up and this increased their worth even more.

Salasar Techno boasts of market capitalisation of Rs 2,987.31 crore and is an emerging player in engineering as well as infra.

Revenues-Driven Income Streams: Steel Structure Business and EPC Business

While the company’s steel structures took a downward turn in this quarter, it is also this area that strength in EPC offered stability to the company’s overall financial showing. 20% revenue increase in EPC another testament to the steady expansion of the company in infrastructure sectors such as telecom and railways. Salasar Techno has been aggressively driving into the telecommunication tower construction, power transmission lines, and railway electrification projects that position it at the front ranks among other entities involved in India’s effort to develop its infrastructure.

Profitability and Expenses

Though the increased costs haven’t really trickled down into lower profit for Salasar Techno, as it reported a net profit of Rs 8.92 crore, the increase in total expenses by Rs 266.65 crore over the last quarter does indicate aggressive execution and growth by the company. Cost control along with revenue growth, more so in the high-margin EPC, will be imperative for sustained profitability of the company in the next quarters.

Huge Long-term Growth Potential

A strong growth-stock presentation by Salasar Techno clearly outlines the massive scope for long-term stability with stocks going up by 1,600% over five years. It has a huge grip on substantial segments such as telecom and energy infrastructure, thus offering such vast space for growth in the coming times. Salasar Techno will ride through higher investments in infrastructure by the Indian government. The Indian Government will now accelerate investment in crucial sectors such as building up of infrastructure, 5G deployment, and renewable energy projects.

This bonus issue at the beginning of the year by the company is a statement of commitment on awarding the investors and increasing value for the shareholders. At 4:1 the bonus ratio, aside from giving higher liquidity in the market, made the stock highly accessible to the smaller investors, and hence the strong price performance of the stock.

Market Outlook and Investor Sentiment

Salasar Techno has seen very auspicious stock performance in the last few years with the significant reason of its robust project pipeline alongside growing market demand for infrastructure solutions. The stock has witnessed a rise of as much as 85% within a time frame of just one year; this again portrays sustained investor confidence. Although its share price fluctuates in the short term, Salasar Techno remains an investor favorite; they search, mostly, for this stock as one offering the highest growth prospects in the construction engineering industry.

As such, the investor sentiment would most likely be positive due to the fact that the company continues to grow through the portfolio of EPC projects that it develops. To that extent, Salasar Techno stands aptly poised to capture greater market share when India embarks upon large-scale infrastructure investments, bound to drive both revenue and profitability.

Conclusion

Salasar Techno Engineering: This one saw the company from the steady revenue growth and profitability perspective spreading its reach into high-demand segments such as telecom and energy, whereas contribution from steel structure fell 11 per cent, and EPC projects rose 20 per cent.
It has been able to become a multibagger stock with a market capitalization of almost Rs 3,000 crore with multifold returns for its shareholders over the years. As it continues to execute this growth strategy on the back of increasing infrastructure demands from India, Salasar Techno again offers a huge upside to long-term investors.
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