560 per cent jump in net profit: This small-cap multibagger stock reports robust growth in Q2FY24; don’t miss the action!

Remarkable growth was driven by a robust 67.2 per cent increase in revenue, which reached Rs 7,724 crores, the highest quarterly revenue in the company's history. The company's EBITDA Margin per cent also improved by 90 bps over the last year's quarter. 

Skipper Limited, a leading manufacturer of Power Transmission & Distribution (T&D) structures, Telecom and Railway structures, and Polymer Pipes & Fittings, has announced stellar financial results for the second quarter of FY24, ended September 30, 2023. The company's Profit after Tax surged by an impressive 560 per cent to Rs 19.8 crore, compared to the same period last year. 

This remarkable growth was driven by a robust 67.2 per cent increase in revenue, which reached Rs 7,724 million, the highest quarterly revenue in the company's history. The company's EBITDA Margin per cent also improved by 90 bps over the last year's quarter. 

Significantly, the company's polymer division witnessed phenomenal growth, with sales volumes increasing by over 101 per cent from 3,924 MT to 7,872 MT in Q2 FY 24. This growth is attributed to the increasing demand for Skipper's high-quality polymer pipes and fittings in various infrastructure projects. 

The company's order book position for Q2 FY'24 stood at Rs 15,290 million, and its highest ever H1 YTD inflow of Rs 27,440 million for engineering products supplies and EPC works. The closing order book as on September 30, 2023, is valued at Rs 60,740 million, which constitutes 17 per cent exports and 83 per cent domestic orders.

Skipper's brand campaign and positioning as India's Safest Pipes with brand ambassador MS Dhoni paying rich dividends. Higher growths witnessed in campaign markets indicating campaign effectiveness. MS Dhoni is brand ambassador only for polymer business where other businesses implements marketing campaigns.

Commenting on the company announcement Mr. Devesh Bansal, Director Skipper Limited said “I am thrilled to present our Q2 FY'24 performance, which underscores Skipper’s steadfast commitment to excellence. During this quarter, in the Polymer segment, we observed an impressive 101 per cent increase in volume, soaring from 3,924 MT to 7,872 MT during Q2FY 24, a testament to the widespread market acceptance of our products and the dedication of our team. The first half of this year has been exceptional, with sales volume in H1'23 reaching 16,751 MT, marking a remarkable 94% increase compared to the same period last year, clearly indicating that we are on the right trajectory.

Mr. Bansal also added “Our "India's Safest Pipes" brand campaign, featuring MS Dhoni as our ambassador, has yielded outstanding results, with increased growth in the campaign markets signifying its effectiveness. We plan to expand this campaign into new markets and geographies in the coming quarters. Furthermore, our well-structured channel framework, is deeply rooted in the TOC way of working, provides a robust foundation for expanding our operations and enhancing customer service. I deeply value our collective accomplishments, and as we look ahead, we hold an optimistic view for the second half of this fiscal year and beyond, expecting to sustain the positive growth trend.

Skipper Ltd, with a market capitalization of Rs 2,387 crores, currently trades at Rs 232 per share, reaching a high of Rs 255 and a low of Rs 67.6 in recent times. The stock has a Price to Earnings ratio of 39.1, suggesting it may be slightly overvalued. Skipper Ltd has shown a Return on Capital Employed (ROCE) of 11.9 per cent, indicating its efficiency in utilizing capital for profitability, although the Return on Equity (ROE) is comparatively lower at 4.33 per cent.

Year-to-date, the company has achieved an impressive growth rate of 84.93 per cent, reflecting its robust performance in the current market conditions. Over the past year, Skipper Ltd's stock has soared by an astounding 232.27 per cent, indicating its ability to deliver returns to investors. Furthermore, the company's long-term performance is equally remarkable, with a three-year return of 386.47 per cent. 

Disclaimer: The article is for informational purposes only and not investment advice.

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