Paramount Communications Q4 Results: PAT Surges 113%; Sales Jump 60%

Founded in 1955, Paramount Communications Limited is a major force in the wire and cable sector in India. It has two manufacturing sites in Rajasthan and Haryana and provides more than 2,500 SKUs and more than 25 product categories. Paramount, which operates both domestically and abroad, is credited with being a pioneer in the introduction of lead-free house wires, undersea cable installation and maintenance, and axle counter cables for railways.

Paramount Communications' net profit climbed 113.70% to Rs 29.49 crore in the quarter that ended in March 2024 from Rs 13.80 crore in the quarter that ended in March 2023. Sales went up from Rs 202.08 crore in Q4FY23 to Rs 323.37 crore in Q4FY24, a 60.02% growth. In comparison to the previous year ending March 2023, which had a net profit of Rs 47.77 crore, the full-year net profit jumped by 79.25% to Rs 85.63 crore in March 2024. Sales jumped from Rs 796.47 crore in FY23 to Rs 1070.60 crore in FY24, a 34.42% growth.

The company reported a robust order book of Rs. 4,951.6 Mn with a healthy balance sheet with debt-equity ratio of 0.16 and a current ratio of 3.40. Paramount Communications said it is poised to become debt-free during FY25 after full repayment of ARC debt of Rs. 862.5 Mn.

Mr. Sanjay Agarwal, Chairman & CEO said, "FY24 has been a remarkable year for Paramount Communications Limited. We have achieved strongest ever performance in terms of Revenue and Profitability. This year, we reached a significant milestone by surpassing Rs.1,000 crore in revenue showing a growth of 34.4% y-o-y. This achievement is underpinned by strong demand for our product portfolio and not only highlights the strength of our client relationships but also reaffirms our consistent delivery on commitments."

"Our order book which currently stands at Rs. 4,951.6 Mn, provides strong visibility of revenues. Paramount is optimistic about further expanding its order book, bolstered by significant support from the railway and power sectors. Our focus on operational excellence has led to significant improvements in our financial performance. In FY24, our EBITDA has increased to Rs. 972.6 Mn, showcasing a growth of 51.5% growth as compared to Rs. 642.0 Mn in FY23. This growth, coupled with an EBITDA margin of 9.0%, reflects the benefits of operating leverage and a sharp focus on cost control," he further added.

"In FY24, Paramount achieved a significant milestone by substantially repaying its ARC debt and positioning itself to become debt-free by FY25, demonstrating its commitment to prudent financial management. This achievement strengthens the company's balance sheet and ensures sufficient capital to pursue growth and enhance capabilities. Strategically positioned, Paramount is poised for strong and sustained growth, with a focus on diversifying our product range and delivering top-notch quality solutions in the wires and cables sector, while continuously innovating new products. We are prepared to leverage the anticipated increase in orders and position ourselves adeptly for potential opportunities. With these positive advancements, we remain confident in our capability to consistently deliver strong results for all our stakeholders in the times ahead," Sanjay Agarwal stated.