Coventry Coil's Profitability Retreats After a Brief Recovery
The spring maker's profit fell sharply from the previous quarter, though it stayed in the black compared to last year's loss.
Coventry Coil-o-Matic reported a 4.5% yearly revenue rise in Q1 FY25, but profit dropped 53% sequentially. The company remains profitable on a yearly basis.
Coventry Coil-o-Matic (Haryana) delivered a mixed first-quarter performance, with modest yearly sales growth overshadowed by a sharp sequential drop in profitability. The auto ancillary firm's profit fell by more than half compared to the previous quarter, signaling a retreat from the recovery path it had begun in the last fiscal year.
The company's revenue for the quarter ended June 2024 stood at ₹21.67 crore, up 4.5% from the same period last year. However, profit after tax (PAT) was ₹0.28 crore, down 53.3% from the ₹0.60 crore earned in the March 2024 quarter. This sequential decline pulled the net profit margin down to 1.3% from 2.5% last quarter, though it remains a positive improvement from the -2.3% margin in Q1 FY24.
A look at the recent quarters reveals a volatile earnings path. After posting losses in the first three quarters of FY24, the company returned to profitability in Q4. The latest quarter continues that positive run on a yearly basis but shows momentum is cooling.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY25 | PreviousQ4 FY24 | Same quarter LYQ1 FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 21.67YoY +4.5% | 23.73 | 20.74 |
| Profit (₹ Cr) | 0.28YoY +158% | 0.60 | -0.48 |
| Net Profit Margin | 1.3%YoY +157% | 2.5% | -2.3% |
Key Points
- The trailing twelve-month (TTM) revenue is ₹88.18 crore, with a TTM net loss of ₹0.80 crore.
- The company's return on equity (ROE) stands at 12.33%, while its current ratio is 0.52.
- Earnings per share (EPS) on a TTM basis is negative at -₹1.78.
While the company has climbed out of the red compared to last year, maintaining and growing its slim profitability will be the critical challenge for the quarters ahead.
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· COVENTRY COIL-O-MATIC
(BSE)
ISIN: INE964D01013
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