Skipper Limited , a prominent player in the Indian manufacturing sector, has announced its financial results for the second quarter, showcasing significant growth across key metrics and important board decisions.

Financial Highlights

Skipper Limited has demonstrated a strong financial performance in the second quarter, with notable improvements across all key financial indicators.

Revenue Growth

The company reported a substantial increase in revenue, reaching ₹12.60 billion compared to ₹11.10 billion in the same quarter of the previous year. This represents a robust year-over-year growth of 13.5%, indicating enhanced business activities and potentially increased market demand for Skipper's products and services.

Profitability Improvements

Skipper's profitability metrics also showed positive trends:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to ₹1.31 billion from ₹1.10 billion in the corresponding quarter last year, marking a significant 19.1% increase.
• The EBITDA margin improved to 10.36% from 10.13%, reflecting enhanced operational efficiency and cost management.
• Consolidated net profit grew to ₹370.00 million, up from ₹329.00 million in the previous year's Q2, representing a 12.5% increase.

Tax Settlement and Financial Impact

In a significant development, Skipper Limited settled a disputed entry tax of ₹142.39 million for ₹106.79 million under West Bengal Sales Tax settlement rules. This settlement resulted in an exceptional item that reduced the company's profit after tax by ₹79.91 million and basic EPS by ₹0.71 per share.

Board Decisions and Corporate Actions

The company's Board of Directors made several important decisions:

1. Approved the forfeiture of 33,198 partly paid-up equity shares where call money remains unpaid.
2. Designated Mr. Durga Singh Shekhawat as Senior Management Personnel with the role of President-Tower (Domestic).
3. Approved a postal ballot notice to seek member approval for increasing borrowing powers and mortgage/charge creation on company assets.

Financial Risk Management

Skipper Limited entered into commodity hedge contracts during the quarter, with ₹65.54 million recognized in other comprehensive income under cash flow hedge reserve. This move indicates the company's proactive approach to managing financial risks associated with commodity price fluctuations.

Market Implications

The robust financial performance of Skipper Limited may be indicative of broader positive trends in the manufacturing sector. The company's ability to grow revenue and improve profitability metrics suggests effective management strategies and potentially favorable market conditions.

Investors and market analysts may view these results as a positive signal, potentially impacting the company's stock performance and market valuation. However, it's important to note that future performance can be influenced by various internal and external factors.

Skipper Limited's strong Q2 results, combined with strategic decisions on tax settlement, management changes, and financial risk management, demonstrate the company's resilience and growth potential, positioning it well in the competitive landscape of the Indian manufacturing sector.

Skipper Limited , a leading manufacturer in the power transmission and distribution sector, has delivered its strongest first-quarter performance to date, showcasing impressive growth across key financial metrics.

Financial Highlights

• Net revenue surged by 15% year-on-year to INR 2,539.00 million
• EBITDA reached a record INR 272.00 million, up 22% from the previous year
• EBITDA margins improved to an all-time high of 10.1%
• Standalone PAT increased by 41% to INR 447.00 million, with margins expanding to 3.6%

Segment Performance

The company's growth was primarily driven by strong performances in its core segments:

• Engineering segment revenue grew by 24% to INR 1,248.00 million
• Polymer segment revenue surged by 34% to INR 272.00 million
• Export revenue in the engineering segment increased by 30% to INR 254.00 million

Order Book and Future Outlook

Skipper Limited has secured significant new orders, strengthening its market position:

• Order inflows of INR 1,977.00 million, up 158% year-on-year
• Current order book reached an all-time high of INR 8,520.00 million
• Secured three 765 kV transmission line projects from Power Grid Corporation

Capacity Expansion

To meet growing demand, Skipper has undertaken strategic capacity expansions:

• Commissioned 75,000 tons of additional capacity
• Plans to add another 75,000 tons by year-end
• Targeting 600,000 tons capacity by FY28

Management Commentary

During the earnings conference call, Mr. Sharan Bansal, Director of Skipper Limited, expressed confidence in the company's growth trajectory. He stated, "We are confident of delivering profitable revenue growth with consistent margins in the current year and expect to clock revenue growth in excess of 25% for the current financial year."

The management has provided guidance for 25% revenue growth and anticipates order inflows of INR 6,500.00-7,000.00 crores for the year.

Market Outlook

Skipper Limited remains optimistic about the future of the power transmission sector in India. The company is well-positioned to capitalize on the government's planned investment of INR 9.00 lakh crores in the transmission sector until 2032. This investment is expected to integrate about 500 gigawatts of renewable energy into the grid, presenting significant opportunities for companies like Skipper.

Conclusion

With its record-breaking quarterly performance, robust order book, and strategic capacity expansions, Skipper Limited appears well-positioned for sustained growth in the power transmission and distribution sector. The company's focus on both domestic and international markets, coupled with the positive industry outlook, suggests a promising future for Skipper Limited in the coming years.