Concrete Credit Revenue Crashes 90% Sequentially, Profit Stagnates
The infrastructure firm's quarterly revenue fell sharply from the previous quarter, while profit remained at a minimal level.
Concrete Credit reported a dramatic 90% sequential drop in revenue for Q2 FY23, with profit holding flat at a nominal ₹0.01 crore. The company's earnings show a stark decline from the previous quarter.
Concrete Credit's second-quarter earnings for FY23 reveal a severe contraction in its top line, with revenue plummeting by over 90% compared to the previous quarter. Profit, however, held steady at a nominal level, indicating a period of minimal earnings activity for the infrastructure firm.
The company's quarterly performance over the last three periods shows a clear downward trajectory in both revenue and profit.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY23 | PreviousQ1 FY23 |
|---|---|---|
| Period | Quarter ended September 2022 | Quarter ended June 2022 |
| Revenue (₹ Cr) | 1.32 | 13.32 |
| Profit (₹ Cr) | 0.01 | 0.01 |
| Net Profit Margin (%) | 0.8 | 0.1 |
From a revenue peak of ₹52.38 crore in Q4 FY22, the figure has fallen sharply to just ₹1.32 crore in the latest quarter. Profit has followed a similar path, declining from ₹0.43 crore to a flat ₹0.01 crore over the same period. The net profit margin, while showing a slight sequential improvement due to the minimal profit on a much smaller revenue base, remains extremely thin.
Key Points
- The company maintains a strong balance sheet with zero debt, as indicated by a debt-to-equity ratio of 0.0.
- Its return on equity (RoE) stands at 5.91%.
- Concrete Credit trades at a significant discount to its industry, with a P/E of 20.9 compared to the sector average of 56.7.
Despite the challenging quarterly earnings, the stock's valuation suggests the market has already priced in considerable headwinds.
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· CONCRETE CREDIT
(BSE)
ISIN: INE719G01014
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