Paramount Communications Limited recently disclosed significant insider trading activity, with two of its promoter directors increasing their stakes in the company through open market transactions.

Key Highlights

• Transaction Date: March 20, 2020
• Promoter Directors Involved: Sanjay Aggarwal and Sandeep Aggarwal
• Shares Acquired: 25,000 each (0.014% of total share capital per director)

Detailed Shareholding Impact

Both directors also hold 43,00,000 warrants each, which are convertible to equity shares.

Company Share Capital Structure

• Total Equity Share Capital: Rs. 36.83 crores
• Number of Equity Shares: 18,41,33,965
• Face Value per Share: Rs. 2
• Listing: Shares are listed on NSE and BSE

This insider buying activity by the promoter directors may be viewed as a positive signal by investors, as it often indicates management's confidence in the company's prospects. However, investors should conduct their own research and consider multiple factors before making investment decisions.

The promoters' increased stake strengthens their position within the company, potentially influencing future decision-making processes. The additional warrants held by both directors also represent potential for further increase in their shareholding, subject to conversion.

Paramount Communications Limited operates in the telecommunications and power cables sector. While this transaction doesn't directly impact the company's operations, it does reflect on the ownership structure and insider sentiment towards the company's future performance.

Paramount Communications , a leading player in the wires and cables industry, has announced its financial results for the first quarter, along with several key corporate decisions.

Financial Performance

For the quarter ended June 30, Paramount Communications reported a robust growth in its standalone revenue from operations, which stood at Rs 450.87 crore, marking a significant increase from Rs 313.32 crore in the corresponding quarter of the previous year. This represents a year-on-year growth of approximately 43.90%.

However, the company's net profit for the quarter saw a decline, coming in at Rs 19.00 crore compared to Rs 25.18 crore in the same period last year. This decrease in profit can be partially attributed to increased expenses and market conditions.

The company's other income for the quarter included a notable one-time gain of Rs 13.91 crore, received upon the maturity of a keyman insurance policy with Life Insurance Corporation of India.

Segment Performance

Paramount Communications operates in two reportable segments: Wires and Cables, and Pipes. The Wires and Cables segment, which is the company's primary business, generated a revenue of Rs 450.87 crore for the quarter. The Pipes segment contributed Rs 0.52 crore to the total revenue.

Corporate Updates

The Board of Directors, in their meeting held on August 13, made several important decisions:

1. Annual General Meeting: The 31st Annual General Meeting (AGM) of the company has been scheduled for September 29, at 3:00 p.m. The meeting will be conducted through Video Conferencing or Other Audio Visual Means (VC/OAVM).

2. Book Closure: The company has fixed the book closure dates from September 23 to September 29 (both days inclusive) in connection with the AGM.

3. Director Continuation: Based on the recommendation of the Nomination and Remuneration Committee, the Board has approved the continuation of Mr. Vijay Maheshwari as a Director of the company upon reaching the age of 75 years. This decision is subject to shareholder approval at the upcoming AGM.

   Mr. Maheshwari, a fellow member of the Institute of Chartered Accountants of India, brings over 46 years of experience in finance to the board. He is recognized for his vision and dynamism, and has been actively involved in promoting trade and commerce, serving as the Mentor and past Chairman of the CII-ER Banking Core Committee.

Auditor's Review

The financial results for the quarter have undergone a limited review by the company's statutory auditors, P. Bholusaria & Co. The auditors have expressed an unmodified opinion on these results.

Paramount Communications continues to navigate the dynamic market conditions, focusing on its core competencies in the wires and cables sector while also maintaining a presence in the pipes segment. The company's strong revenue growth demonstrates its resilience and market position, despite the challenges reflected in the reduced net profit figures.

Investors and stakeholders will be keenly watching the company's performance in the coming quarters, as well as any strategic decisions that may be announced at the upcoming AGM.