Prabhu Steel Industries Reports Mixed Q1 Results: Profit Dips, Revenue Surges
Prabhu Steel Industries Limited released its Q1 financial results, showing a 90% quarter-on-quarter increase in revenue to ₹480.61 crore. However, profit after tax decreased by 49% to ₹8.80 crore. Total income rose to ₹487.22 crore, but expenses also increased significantly. The company's earnings per share dropped to ₹1.23 from ₹2.42 in the previous quarter. The Board of Directors approved these unaudited results on August 4. Prabhu Steel Industries continues to focus solely on the iron and steel trading segment.
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Prabhu Steel Industries Limited , a prominent player in the iron and steel trading segment, has released its financial results for the first quarter, revealing a mixed performance with significant revenue growth but a decline in profitability.
Revenue Surge
The company reported a substantial increase in revenue from operations, which rose to ₹480.61 crore in Q1, up from ₹252.89 crore in the previous quarter. This represents a remarkable 90% quarter-on-quarter growth, indicating a strong uptick in the company's trading activities.
Profit Decline
Despite the impressive revenue growth, Prabhu Steel Industries experienced a decline in its bottom line. The profit after tax (PAT) for Q1 stood at ₹8.80 crore, down from ₹17.35 crore in the previous quarter, marking a 49% decrease.
Financial Highlights
| Particulars (₹ in crore) | Q1 | Q4 | QoQ Change |
|---|---|---|---|
| Revenue from Operations | 480.61 | 252.89 | +90% |
| Total Income | 487.22 | 309.96 | +57% |
| Total Expenses | 475.46 | 287.47 | +65% |
| Profit Before Tax | 11.76 | 22.49 | -48% |
| Profit After Tax | 8.80 | 17.35 | -49% |
| Earnings Per Share (₹) | 1.23 | 2.42 | -49% |
Operational Performance
The company's total income for the quarter increased to ₹487.22 crore from ₹309.96 crore in the previous quarter. However, this growth was accompanied by a significant rise in expenses, particularly in the purchase of trading stock, which jumped to ₹549.34 crore from ₹198.29 crore in the preceding quarter.
Management Approval
The Board of Directors of Prabhu Steel Industries Limited approved these unaudited financial results at their meeting held on August 4. The meeting, which commenced at 2:30 p.m., concluded at 3:35 p.m.
Segment Focus
Prabhu Steel Industries continues to operate solely in the trading of iron and steel segment, as confirmed in the company's regulatory filing.
Earnings Per Share
The company's earnings per share (EPS) for Q1 stood at ₹1.23, compared to ₹2.42 in the previous quarter, reflecting the decrease in profitability.
While Prabhu Steel Industries has demonstrated strong revenue growth, the decline in profitability highlights the challenges faced by the company in managing its increased operational scale. Investors and analysts will be keenly watching how the company balances its growth trajectory with profitability in the coming quarters.
Historical Stock Returns for Prabhu Steel Industries
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