Shares of a company engaged in the business of manufacturing wires and cables are in focus on BSE. The company aims to surpass revenues of Rs. 5,000 crores by FY30. Paramount Communications Limited is engaged in the manufacturing business of wires and cables comprising power cables, telecom cables, railway cables, specialised cables and pipes.
Price Movement
With a market capitalisation of Rs. 1,695 crores, the shares of Paramount Communications Limited hit an intraday high at Rs. 57.1 on Friday, up by around 4.3 percent, as against its previous closing price of Rs. 54.74. The stock has delivered negative returns of nearly 16 percent over a one-year period, as well as around 13 percent returns in the last one month.
Management Guidance
The company’s management has indicated that Paramount is projected to surpass Rs. 5,000 crores in revenue by FY30. Over the next five years, the company aims to achieve a CAGR of over 30 percent in total revenues, derive 40 percent of its revenues consistently from exports, primarily to the US, and improve its EBITDA margins by 100 basis points.
Order Book
As of December 31, 2024, the company’s order book stood at Rs. 620.26 crores, with domestic orders accounting for 62.2 percent and export orders contributing 37.8 percent (Rs. 234.5 crores).
The order book is diversified across various segments, including Power Cables (Rs. 326 crores), Railway Cables (Rs. 37 crore), Telecom Cables (Rs. 5.6 crore), House Wires (Rs. 8.5 crores), EPC projects (Rs. 2 crores), and Pipes & Others (Rs. 6.7 crores).
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Expansion Plans
Paramount has been allocated approximately 31 acres of industrial land in the Narmadapuram Industrial Estate, Madhya Pradesh, by MPIDC, to establish a new greenfield manufacturing plant for wires and cables. The
estimated cost of the project (excluding land) is Rs. 250 crores, with an expected completion timeline of 1.5 to 2 years. This new facility is expected to start contributing to the company’s revenue by FY27 and is projected to double its revenue-generating capacity.
Segmental Revenue Breakup
Paramount Communications reported a gross segment revenue of Rs. 392 crores in Q3 FY25. The Wire and Cables segment was the primary contributor, generating Rs. 386.4 crores, which accounted for 98.6 percent of the company’s total revenue. The Pipes segment followed with Rs. 5.65 crores, making up 1.44 percent of the total revenue.
In terms of revenue breakdown for Q3 FY25, Power Cables contributed 47.9 percent, Exports accounted for 37.4 percent, Railways Cables made up 5.8 percent, House Wires contributed 4.9 percent, Pipe & Other segments represented 2.7 percent, and Telecom Cables contributed the remaining 1.2 percent.
Financial Performance & Ratios
Paramount Communications reported a significant growth in its revenue from operations, showing a year-on-year increase of around 37.8 percent from Rs. 284.2 crores in Q3 FY24 to Rs. 391.6 crores in Q3 FY25.
Similarly, its net profit increased marginally during the same period from Rs. 22 crores to Rs. 22.6 crores, indicating a rise of nearly 2.6 percent YoY. The company’s revenue from operations grew at a CAGR of 35.7 percent between FY22 and FY24, despite challenges posed by limited working capital support from banks.
The company maintained minimal debt levels, with the debt-to-equity ratio improving to 0.16x in FY24, compared to 0.93x in FY22. The Net Fixed Asset Turnover Ratio improved to 6.3x in FY24, driven by better capacity utilization. Additionally, Return on Equity (RoE) surged from 4.2 percent in FY22 to 18.6 percent in FY24.
Written by Shivani Singh
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