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Business News/ Markets / Stock Markets/  Small-cap stock Lagnam Spintex hits record high after Q3 results 2024. Jumps 17% despite weak stock market
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Small-cap stock Lagnam Spintex hits record high after Q3 results 2024. Jumps 17% despite weak stock market

Lagnam Spintex's Q3FY24 Profit After Tax stands at ₹4.63 crore, a 1900% increase YoY, with PAT growing over 255% sequentially.

Lagnam Spintex reports YoY growth of 73% in Q3FY24 total revenue, with export turnover increasing by 310%. (Photo: Pixabay)Premium
Lagnam Spintex reports YoY growth of 73% in Q3FY24 total revenue, with export turnover increasing by 310%. (Photo: Pixabay)

Despite a heavy sell-off in the small-cap index today and other indices of the Indian stock market, Lagnam Spintex share witnessed strong buying interest on Monday. The small-cap stock opened upside at 117.55 apiece on NSE and continued to trade flat till the board of directors of the company declared Q3 results 2024

The small-cap stock attracted the buying interest of Dalal Street bulls after the announcement of strong Q3 results today. The company declared growth in net profit, total revenue, and export turnover both yearly and sequentially.

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Lagnam Spintex Q3 results 2024

In Q3FY24, Lagnam Spintex reported total revenue in the October to December 2023 quarter at 123.63 crore, logging YoY growth of 73.32 percent against the total revenue of 72.16 crore in the corresponding period in the previous financial year. On a QoQ basis, the company's total revenue grew from 92.58 crore to 123.63 crore, logging a QoQ rise of over 33.50 percent.

Also Read: Why small-cap index crashed over 1000 points today — explained with 5 reasons

In the October to December 2023 quarter, Lagnam Spintex reported Profit After Tax (PAT) at 4.63 crore, which stood at 0.23 crore in Q3FY23. This means, the company has managed to improve its EBITDA by over 1900 percent in the last one year (YoY). In Q2FY24, the company's PAT stood at 1.30 crore, which means the company's PAT grew over 255 percent sequentially.

Lagnam Spintex said that the increase in total revenue was due to the new product profile they have added as part of their expansion project and reached out to new markets both in Exports and Domestic.

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The Export Turnover has jumped from 15.11 crore in Q3FY23 to 62.02 crore in Q3FY24. The export turnover comprises 50 percent of the total revenue of the company. The increase in export revenue by 310 percent was seen in Q3FY24 compared to Q3FY23 mainly because of an increase in export demand and also with our new product offering in quality-conscious markets of Europe, Columbia, Egypt, Morocco, Peru, and our existing well-established market of Bangladesh, United States, Italy, etc.

Commenting on the performance of the company, Anand Mangal, Promoter & Managing Director of Lagnam Spintex said, "There is an uptick in Cotton yarn demand in this quarter and we are thrilled that our expansion project completion was timed well with this market opportunity. Our product quality from the expansion project is well accepted in both the Domestic and Export markets which is helping us to increase our customer base."

The company also informed that they are moving in a big way towards renewable energy and have commissioned 4.4 MW of Rooftop Solar project and looking at adding another 0.5 MW shortly, this will save energy cost for the company.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 12 Feb 2024, 03:36 PM IST
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