Permanent Magnets Limited Reports 27% EBITDA Growth in Q1 Despite Flat Revenue

2 min read     Updated on 12 Aug 2025, 01:07 PM
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Radhika SahaniScanX News Team
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Overview

Permanent Magnets Limited announced Q1 financial results with revenue slightly down by 1% to ₹53.55 crores. However, profitability improved significantly with EBITDA up 27% to ₹10.69 crores and EBITDA margin expanding to 20% from 16%. Profit after tax increased by 22% to ₹6.17 crores. The company attributes the improved profitability to favorable changes in product mix across EV and Smart Meter segments. Ongoing projects include a relay manufacturing facility and expansion of the alloys business. Management remains optimistic about future growth prospects.

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*this image is generated using AI for illustrative purposes only.

Permanent Magnets Limited , a specialist in electrical components and assemblies for automobiles and electricity meters, has announced its financial results for the first quarter, showcasing significant improvements in profitability despite a marginal decline in revenue.

Financial Highlights

The company reported revenue from operations of ₹53.55 crores for Q1, representing a slight 1% year-over-year decline. However, Permanent Magnets Limited demonstrated remarkable profitability improvements:

Particulars Q1 Q1 (Previous Year) YoY Change
Revenue from Operations ₹53.55 ₹54.32 -1%
EBITDA ₹10.69 ₹8.43 27%
EBITDA Margin 20% 16% 400 bps
Profit After Tax ₹6.17 ₹5.04 22%
Earnings Per Share ₹7.17 ₹5.86 22%

Improved Profitability

The company's EBITDA grew by 27% to ₹10.69 crores, with the EBITDA margin expanding to 20% from 16% in the previous year. This significant improvement in profitability was attributed to favorable changes in the product mix across both EV and Smart Meter segments.

Profit after tax increased by 22% to ₹6.17 crores, while earnings per share rose to ₹7.17, also marking a 22% increase year-over-year.

Management Commentary

Sharad Taparia, Managing Director of Permanent Magnets Limited, commented on the results: "We saw an improvement in profitability margins in Q1, largely driven by a favorable shift in product mix across both EV and Smart Meter product segments. While topline performance remained largely flat YOY, with a marginal 1% decrease, we did see sequential improvement compared to the previous quarter."

Ongoing Projects and Future Outlook

The company provided updates on its ongoing projects:

  1. Relay Manufacturing Facility: The facility is progressing as planned, with customer testing and trials underway. Initial orders are expected to coincide with the facility becoming operational in the fourth quarter.

  2. Alloys Business: This segment has moved to commercial operations. Additional capacity from a new furnace is expected to be commissioned in December, which will enhance the company's ability to take on larger orders.

Taparia added, "Profitability margins may continue to evolve depending on future product mix changes. However, we remain focused on optimizing this through strategic product development. Overall, we are on a path to good growth for the future."

Permanent Magnets Limited continues to leverage its 65+ years of experience in magnets, magnetic assemblies, and shunts domains. The company maintains strong expertise in five core product categories: magnetic sensing, current sensing, magnetic assemblies, alloys, and ZAMAK die-casting.

As a preferred supplier to many tier-1 automobile companies globally and top electricity meter companies worldwide, Permanent Magnets Limited is well-positioned to capitalize on opportunities in both traditional ICE vehicles and emerging technologies like electric vehicles.

Historical Stock Returns for Permanent Magnets

1 Day5 Days1 Month6 Months1 Year5 Years
-1.41%+3.66%-6.44%+33.69%-0.67%+515.50%
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Permanent Magnets Reports 28% Profit Surge in Q1 Despite Revenue Dip

1 min read     Updated on 06 Aug 2025, 05:18 PM
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Ashish ThakurScanX News Team
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Overview

Permanent Magnets Limited announced Q1 financial results with mixed performance. Net profit increased by 28% to ₹73.00 million, despite a 2.02% revenue decline to ₹532.00 million. EBITDA rose by 28.74% to ₹112.00 million, with EBITDA margin improving to 21.05%. Managing Director Sharad Taparia attributed the results to operational excellence and cost management strategies. The company's core focus remains on engineering and current sensing applications.

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*this image is generated using AI for illustrative purposes only.

Permanent Magnets Limited , a leading player in the engineering and current sensing applications sector, has announced its financial results for the first quarter, showcasing a mixed performance with significant profit growth despite a slight decline in revenue.

Profit Soars

The company reported a substantial increase in net profit for Q1, reaching ₹73.00 million, up from ₹57.00 million in the same quarter last year. This represents a remarkable 28% year-over-year growth, highlighting the company's ability to enhance its bottom line despite challenging market conditions.

Revenue and EBITDA Performance

While the company's profitability improved, revenue saw a marginal decline:

Metric Q1 (Current Year) Q1 (Previous Year) Change
Revenue ₹532.00 million ₹543.00 million -2.02%
EBITDA ₹112.00 million ₹87.00 million +28.74%
EBITDA Margin 21.05% 16.02% +5.03 percentage points

Despite the slight dip in revenue, Permanent Magnets demonstrated strong operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increasing significantly to ₹112.00 million from ₹87.00 million in the previous year. The EBITDA margin also saw a substantial improvement, rising to 21.05% from 16.02% year-over-year.

Management Commentary

Sharad Taparia, Managing Director of Permanent Magnets Limited, stated, "Our first quarter results reflect our commitment to operational excellence and cost management. Despite a challenging revenue environment, we've significantly improved our profitability and operational efficiency. The substantial increase in our EBITDA and net profit demonstrates the effectiveness of our strategic initiatives and our ability to adapt to market conditions."

Future Outlook

While the company has not provided specific guidance for the upcoming quarters, the significant improvement in profitability and operational metrics suggests a positive outlook. Permanent Magnets continues to focus on its core business segment of engineering and current sensing applications, which is considered its primary business segment.

Investors and analysts will be watching closely to see if the company can maintain its improved profitability while working to boost revenue in the coming quarters. The company's ability to enhance its EBITDA margin in a challenging revenue environment is a positive sign for its operational efficiency and cost management strategies.

Permanent Magnets Limited's shares are listed on the Bombay Stock Exchange under the scrip code 504132 and security ID PERMAGN.

Historical Stock Returns for Permanent Magnets

1 Day5 Days1 Month6 Months1 Year5 Years
-1.41%+3.66%-6.44%+33.69%-0.67%+515.50%
Permanent Magnets
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