Shares of CCL Products (India) Limited dropped 3.56% to Rs 656.35 at 9:43 AM on February 6, following the company’s Q3 FY25 financial results. Despite a 14.4% year-on-year (YoY) increase in revenue, net income remained relatively flat, raising investor concerns about profitability amid higher operating expenses.
Key Financial Highlights (Q3 FY25)
- Sales: Rs 7,584.11 million, up from Rs 6,644.82 million in Q3 FY24.
- Total Revenue: Rs 7,611.81 million, compared to Rs 6,656.13 million in the same period last year.
- Net Income: Rs 630.44 million, marginally down from Rs 632.85 million a year ago.
- Basic and Diluted EPS: Rs 4.73, slightly lower than Rs 4.76 in Q3 FY24.
Nine-Month Performance (April-December 2024)
- Sales: Rs 22,699.02 million, a 17.8% YoY increase from Rs 19,269.84 million.
- Total Revenue: Rs 22,745.50 million, up from Rs 19,291.90 million a year ago.
- Net Income: Rs 2,084.68 million, up from Rs 1,848.55 million, reflecting a 12.8% growth.
- Basic EPS: Rs 15.65 compared to Rs 13.90 YoY.
- Diluted EPS: Rs 15.63 compared to Rs 13.87 YoY.
Market Impact
The stock’s decline reflects investor concerns over CCL Products’ inability to translate top-line growth into corresponding profit increases. Flat net income despite robust sales growth indicates potential margin pressures due to elevated costs.
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