Everest Kanto Cylinder Reports 85% Surge in Q1 Profit, Boosted by US Tax Refund
Everest Kanto Cylinder Limited, India's largest manufacturer of high-pressure seamless gas cylinders, reported strong Q1 financial results. Consolidated profit after tax increased by 85% year-over-year to ₹5,158.00 lakhs, while revenue grew 13% to ₹38,688.00 lakhs. The company benefited from an exceptional gain of ₹1,263.00 lakhs from a US tax refund. Standalone performance was also robust, with revenue up 21% and profit after tax more than doubling. The company's diverse geographical presence spans India, UAE, USA, and Hungary, positioning it well for future growth in the gas cylinder market.
Everest Kanto Cylinder Limited has received a customs duty demand and penalty totaling Rs 1.32 crore due to a classification dispute of imported raw materials. The customs authority has reclassified the materials, attracting a higher Basic Customs Duty of 25%. The company plans to appeal the order with the Customs, Excise, Service Tax Tribunal (CESTAT), stating that there is no material impact on its financials or operations. To proceed with the appeal, Everest Kanto must pay 7.5% of the demanded duty or penalty within three months.
Everest Kanto Cylinder Limited is selling 80% of its shares in EKC Europe ZRT, its Hungarian subsidiary, to joint venture partners for 96,000 EUR. The decision is attributed to geopolitical issues in the region. The buyers include Rév András (37.50%), Rév Group Holding Zrt. (37.50%), and Rév Gázipari Kft. (25.00%). Post-transfer, the company name will be changed, and share capital will be reduced to consolidate losses. This move follows the company's decision not to pursue a planned manufacturing facility in Hungary due to regional geopolitical concerns.
23May 25
Everest Kanto Cylinder Reports Mixed Q4 Results with Revenue Growth and EBITDA Improvement
Everest Kanto Cylinder's Q4 results show a 28.83% increase in consolidated revenue to ₹4.20 billion. EBITDA improved to ₹379 million, but the EBITDA margin slightly decreased to 8.98%. Net profit declined by 8.28% year-over-year to ₹133 million, with a more significant 26.52% drop compared to Q3. The company faces challenges in maintaining profit margins despite strong revenue growth.