Penny Stock Under Rs 10: Company Secures Service Contract with UAE-based Erhardt Projects Cargo and Logistics – Stock Rallied Around 5 Per cent
Erhardt, a specialist in industrial project logistics and turnkey solutions across sectors like Oil & Gas, Renewables, and Power, will act as agent in the UAE and Saudi Arabia.
East West Freight Carriers Ltd (EWFCL), a subsidiary of East West Holdings Ltd, has entered into a service agreement with Erhardt Projects Cargo and Logistics Middle East (Erhardt), UAE.
Under this service contract, EWFCL will act as the Principal Agent of Erhardt in India and provide tailor-made logistics support as per their requirement and Erhardt will act as agent of EWFCL in UAE/KSA. This partnership is anticipated to generate revenue of approximately Rs 3.5 to Rs 4 crore.
Erhardt, a specialist in industrial project logistics and turnkey solutions across sectors like Oil & Gas, Renewables, and Power, will act as EWFCL's agent in the UAE and Saudi Arabia. In turn, EWFCL will represent Erhardt as its principal agent in India, offering tailored logistics support to meet their requirements.
Commenting on the collaboration, Mr. Ajaz Shafi Mohammed, Managing Director & CEO of East West Holdings, stated: "We are delighted to welcome two internationally renowned clients to our portfolio in such a short span and are optimistic about adding many more in the near future."
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Financial Performance
As per Quarterly Results, East West Freight Carriers Ltd in Sep 2024 reported a revenue of Rs 68.21 crore compared to Rs 43.43 crore representing a growth of around 57 per cent YoY. The company posted an operating profit of Rs 2.56 crore with a margin of around 3.75 per cent compared to Rs 2.94 crore. The company’s net profit stood at Rs 0.09 crore for the period compared to a profit of Rs 0.09 crore same quarter last year.
Looking at the annual performance, the company generated a revenue of Rs 208 crore in FY24 compared to Rs 250 crore in FY23 representing a de-growth of around 16.63 per cent YoY. The operating profit for FY24 was Rs 13 crore compared to a profit of Rs 8 crore in FY23. The company reported a net profit of Rs 7 crore compared to a loss of Rs 1 crore.
Share Performance
At the start of Thursday’s trading session, East West Freight Carriers Ltd opened at Rs 6.90 per share, compared to the last day’s closing price of Rs 7.02 per share on the BSE. Finally, the shares closed the day at around Rs 7.34 per share on the BSE. The current market capitalization stands at Rs 93.64 crore.
Disclaimer: The article is for informational purposes only and not investment advice.