DCX Systems, a prominent wire and cable manufacturer, experienced a significant uptick of 15 percent, reaching Rs 304 on October 31, driven by a remarkable performance in the second quarter of this fiscal year. The company’s net profit for the September quarter more than doubled, reaching Rs 20 crore, a testament to its robust financial health and operational efficiency.
Despite the S&P BSE Sensex remaining steady at 64,085 levels as of 9:50 am, DCX Systems showcased strong market momentum. On October 31 alone, approximately 1.5 million equity shares changed hands on both BSE and NSE, a notable increase compared to the one-month average of 0.4 million equity shares.
Over the past six months, DCX Systems’ stock has demonstrated impressive growth, surging by 46 percent, outperforming the Sensex benchmark, which rose by only 4 percent during the same period. The company’s revenue for Q2FY24 soared by 77 percent year-on-year, reaching Rs 309 crore, a substantial increase from Rs 173 crore recorded in the previous year. This remarkable growth was propelled by the successful execution of its robust order book, which stood at an impressive Rs 1,258 crore as of September.
Additionally, DCX Systems exhibited notable improvements in its earnings before interest and tax (EBIT), which rose by 93 percent year-on-year to reach Rs 30 crore in Q2FY24, compared to Rs 15 crore in Q2FY23. The company’s EBIT margins also expanded, increasing by 100 basis points to 10 percent in Q2FY24, attributed to enhanced operational efficiency and strategic supply chain measures.
HS Raghavendra Rao, Chairman & Managing Director of DCX Systems, expressed confidence in the company’s future outlook, stating, “We have a healthy and strong order book which gives an optimistic outlook for the near future. Our focus remains on securing raw materials to support the anticipated growth and rationalising expenses to improve operational efficiencies.”
As of 11:23 am, DCX Systems’ shares were trading 11.24% higher at ₹303.40, reflecting the market’s positive response to the company’s stellar performance.
