Penny Stock Surges 13% After Reporting 260% YoY Net Profit Growth
Indsil Hydro Power and Manganese Limited Impresses Investors with Stellar Q3FY25 Results
Indsil Hydro Power and Manganese Limited : A penny stock from the Metal & Mining and Renewable Energy sector has caught the attention of investors after surging 13% intraday, following the announcement of its robust Q3FY25 earnings. The company, Indsil Hydro Power and Manganese Limited, reported an astounding 260% year-on-year (YoY) increase in net profit, signaling strong financial growth.
Stock Price Movement
The stock of Indsil Hydro Power and Manganese opened at ₹45.10, up 1.96% from the previous day’s closing price. Riding on strong investor sentiment, the stock hit an intraday high of ₹50, marking a 13% gain from its prior close. However, profit-booking led to a slight correction, and the stock closed at ₹47.23, reflecting a 6.78% increase for the day.
With a market capitalization of ₹131 Crore, this small-cap stock has been experiencing increased trading volumes, signaling a growing interest from investors.
Q3FY25 Financial Performance
The company delivered exceptional results in Q3FY25, fueled by strong demand for ferroalloys and strategic business decisions. Below is a detailed breakdown of its financial performance:
| Financial Metrics | Q3FY25 | Q3FY24 | YoY Growth (%) | Q2FY25 | QoQ Growth (%) |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 34.24 | 20.19 | +69.58% | 26.38 | +29.79% |
| Net Profit (₹ Cr) | 2.70 | 0.75 | +260% | 2.80 | -0.35% |
| Operating Margin (%) | 18.5% | 12.8% | +44.53% | 19.2% | -3.64% |
| Earnings Per Share (EPS) (₹) | 1.30 | 0.36 | +261.11% | 1.34 | -2.98% |
The revenue surged 69.58% YoY, increasing from ₹20.19 Crore to ₹34.24 Crore, while net profit soared by 260% YoY, reflecting the company’s improving operational efficiency and cost management.
Segment-Wise Performance
The company derives its revenue from two primary business segments:
- Ferro Alloys Segment – Contributing 86% of total revenue.
- Power Segment – Contributing 14% of total revenue.
The ferroalloys segment has been the main growth driver, benefiting from increased demand in the steel industry.
Key Corporate Developments
Indsil Hydro Power and Manganese took a strategic step by selling its entire stake in its joint venture Al-Tamman Indsil Ferro Chromes (FZC) LLC on May 19, 2024 for ₹146.51 Crore. This move has strengthened the company’s financial position, providing additional liquidity to support future growth plans.
Major Clients
Indsil Hydro Power and Manganese has a strong client base both in India and internationally. Some of its key customers include:
Domestic Clients:
- Tata Steel
- SAIL
- JSW Steel
- Jindal Steel
- Essar Steel
International Clients:
- US Minerals
- SINECO
- ThyssenKrupp
- POSCO
- Marubeni
The presence of top-tier steel producers in its clientele reflects the company’s strong reputation and reliability in the ferroalloys market.
About Indsil Hydro Power and Manganese
Founded in 1990, Indsil Hydro Power and Manganese Limited is a prominent producer of ferroalloys, including ferrochrome and silicomanganese, which are key raw materials in steel manufacturing. The company also operates hydropower plants, ensuring cost-efficient and sustainable energy usage.
With manufacturing units in India and a joint venture in Oman, Indsil has established itself as a reliable supplier in the global ferroalloys market.
Conclusion
With a strong Q3 performance, strategic asset sales, and growing demand for ferroalloys, Indsil Hydro Power and Manganese is well-positioned for future growth. Its impressive 260% YoY profit growth has garnered investor interest, pushing the stock 13% higher intraday.
For investors looking at small-cap stocks with strong financials and high growth potential, Indsil Hydro Power and Manganese could be one to watch in the coming quarters.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.