Introduction
Hindustan Composites has announced its Q4 FY25 earnings, showing a solid uptick in sales even as profits took a hit. This update matters if you track industrial plays or want reliable dividend stories. Let us unpack the numbers and see what really happened. 📊
Main Points
• Revenue Growth ✅
– Total revenue from operations came in at ₹89.15 crore, up 8.9% quarter-on-quarter and 13.5% year-on-year.
– Composite Products led the way with ₹77.5 crore (versus ₹71.17 crore in Q3), thanks to healthy industrial demand.
– Investment income added a neat ₹11.65 crore, cushioning the top line.
• Profitability Under Strain ⚖️
– Profit before tax slipped to ₹9.69 crore (-28.3% QoQ, ‑3.2% YoY).
– Net profit fell more steeply to ₹6.07 crore (-44.6% QoQ, ‑23.8% YoY).
– Earnings per share came down to ₹4.11 (-44.7% QoQ, ‑23.9% YoY).
• One-Off Expense Woes
– An exceptional cost of ₹12.75 crore (a disputed ex-worker claim) pulled PBT sharply lower.
– Stripping out that one-off, core operating PBT would have been north of ₹22 crore—nearly double the reported figure.
• Cost Discipline & Margins
– Input costs held steady, and finance costs remain negligible.
– Ex-exceptional EBITDA margins improved, signalling tighter operational control.
– Depreciation charge was ₹2.59 crore, modest for a manufacturing outfit.
• Strategic Moves & Shareholder Rewards
– The company plans ₹4.8 crore of capex to boost monthly Railway Brake Block capacity by 75,000 units.
– A dividend of ₹2 per share on a ₹5 face value is proposed, fully funded through internal accruals.
Conclusion
Hindustan Composites delivered robust top-line momentum but suffered a profit setback from a hefty one-off charge. If you look beyond that glitch, the core business seems healthy, margins are firming and management is backing growth with capex and dividends. Investors will want to watch how the disputed expense is resolved next quarter.