HBL Engineering share price pops 14% on strong performance in Q1, gains 67% from March lows
The company reported its highest-ever quarterly net profit in Q1 at ₹ 143 crore, a 79% jump from ₹ 80 crore posted in the same period last year and a 217% surge from ₹ 45 crore reported in the preceding March quarter. The profit was driven by its Electronics division, which saw revenue jump to ₹ 180 crore from ₹ 87 crore in the June quarter of the previous year.
Revenue from its mainstay battery segment came in at ₹ 337 crore, accounting for the company's largest share, and remained flat year-on-year. Revenue from defense & aviation batteries fell to ₹ 73 crore from ₹ 92 crore in Q1FY25.
Overall, the company's consolidated revenue from operations stood at ₹ 602 crore, marking a 16% YoY jump. At the operating level, it reported an EBITDA of ₹ 192 crore, up 75% YoY, with margins expanding by 1,100 basis points.
Kavach, also known as the Train Collision Avoidance System (TCAS) or Automatic Train Protection System (IRATPS), is an advanced safety solution designed to prevent train collisions and improve operational safety. India's Kavach system, launched in 2020, automatically applies brakes when a loco pilot fails to act, enhancing rail safety through technology.
The company's shares regained strength in March after three straight months of pressure and have since gained 66.6%. Zooming out, the stock has delivered stellar long-term returns, rising 441% over the past two years and 741% over the last three years. It hit an all-time high of ₹ 739.65 in December but currently trades 33% below that peak.
Annually, the stock has consistently delivered strong performance: gaining 160% in CY20, 53% in CY21, 67% in CY22, and a massive 312% in CY23 before finishing the last calendar year with a rally of 43%.
In the current year, it has gained another 10% and is now just 8.4% away from its August 2024 record high of ₹ 739.65.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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