Sterling Tools shares drop over 6% as Q3 profit remains flat, EBITDA margin falls to 10.3%

Sterling Tools Limited shares saw a decline of over 6% during trading on February 4, 2025, after the company reported flat profit growth for Q3 FY25. The company’s net profit stood at ₹13.6 crore, almost the same as the ₹13.58 crore it reported in the corresponding quarter of the previous year.

Key Financial Highlights:

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  • Revenue: ₹260.9 crore, marking a 12.5% growth from ₹231.9 crore YoY, attributed to steady operational growth.
  • EBITDA: Improved slightly by 3.1%, reaching ₹26.8 crore compared to ₹26 crore in Q3 FY24.
  • EBITDA Margin: Dropped to 10.3% from 11.2% in the year-ago period due to increased operating expenses.
Metric Q3 FY25 Q3 FY24 % Change YoY
Revenue ₹260.9 Cr ₹231.9 Cr +12.5%
EBITDA ₹26.8 Cr ₹26.0 Cr +3.1%
Net Profit ₹13.6 Cr ₹13.58 Cr Flat
EBITDA Margin 10.3% 11.2% -90 bps

Market Reaction:

Following the flat profit report, Sterling Tools’ shares fell by 6.28%, trading at ₹461 as of the latest market session. Investors showed concern over the company’s narrowing margins despite revenue growth.

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