Paramount Communications Shares Zoom Over 4% After Q2 Results; Check Financials

On Friday, shares of cable company Paramount Communications Ltd jumped 5.86 per cent to an intraday high of Rs 77.62 per share from its previous closing of Rs 73.32 per share. The stock's 52-week high is Rs 116.85 and its 52-week low is Rs 61.80. The company has a market cap of over Rs 2,360 crore with multibagger returns of 780 per cent in 5 years.

In Q2FY25, Paramount Communications' net profit increased by 4.31% to Rs 20.33 crore, up from Rs 19.49 crore in Q2FY24. In the quarter that ended in September 2024, sales increased 40.98% to Rs 355.89 crore, up from Rs 252.44 crore in the quarter that ended in September 2023.

The company issued 6,23,25,925 equity warrants to non-promoters and entities for the quarter's unutilised portion of the proceeds, and upon receiving the remaining funds, 6,01,25,925 exercised options for the conversion of equity share warrants into an equivalent number of equity shares for the period from July 1, 2024, to September 30, 2024. According to SEBI, the application money, or Rs. 5.40/-per warrant, which is 25% of the issue price, or Rs. 21.57/-per warrant, or Rs. 118.80 lakhs received on such warrants, has been forfeited due to warrant maturity. The remaining 22,00,000 equity warrants, on which 75% of the amount, or Rs. 16.17/-per warrant, was not received, were extinguished.

Despite the absence of bank working capital assistance, the company's revenue from operations increased at a compound annual growth rate (CAGR) of 27% between FY21 and FY24. Between FY21 and FY24, the company's Return on Equity (RoE) grew from 1.7% to 18.6%. According to Paramount Communications, it reduced gross debt levels steadily, with debt to equity standing at 0.2 in FY24 compared to 1.0 in FY21, and converted negative EBITDA margins to 4.1% in FY22 and 9.0% in FY24. Due to improved capacity utilisation, the company's net fixed asset turnover ratio in FY24 is 6.3x. For FY24, the company's order book was valued at Rs 4,952 million.

Power, telecom, railway, and speciality cables are among the many types of cables produced by Paramount Communications Limited, an Indian wire and cable manufacturer. Shyam Sunder Aggarwal established Paramount Communications as a partnership in 1978. It exports its products to Australia, Bangladesh, Chile, Ghana, Libya, Myanmar, Nigeria, Tanzania, the United Arab Emirates, the United Kingdom, the United States, and Zambia. It also has manufacturing facilities in Khushkhera, Rajasthan, and Dharuhera, Haryana.