Diamond Power
Diamond Power Infrastructure is engaged in manufacturing of power cables and transmission towers. The company was locked on the 20% upper circuit today as it has fixed 27th August as the record date for issue of 1:3 bonus shares. The company, for Q1FY14, YoY posted a good set of numbers though sequentially, it wa not too encouraging. The company posted a net sale of Rs.576 crore, up 39% (YoY) and on this, it maintained the operating cost at same level as in Q1FY13 at 89%. The company ended the quarter with a net profit at Rs.34 crore, up 54%.
In terms of segment revenue, its biggest contributor was power cables, revenue up 54%, contributing 70% to the total income. Its EBIT was up 37%. The biggest rise was seen in towers segment, revenues rose 232% and EBIT was up 250%. The company has a huge interest outgo, at Rs.22 crore, up 29% (YoY). The company had raised Rs.440 crore debt to fund its expansion project aggregating to Rs.753 crore, to be completed in three phases. The company is expanding its conductors manufacturing capacity to 1,50,500 MT p.a from current capacity of 50,500 Mt p.a. It is also increasing its rod manufacturing facility to 1,22,000 MT p.a. from the present 32,000 Mt p.a. In case of medium voltage cables, the expansion is to put up additional 3 lines, each with installed capacity of 2500 Kms. As at 30th June, promoters hold 40.20%.