Tempsens Instruments shares fell over 2% in Thursday's trading session despite the company reporting strong revenue and profit growth for the June quarter. The company's consolidated revenue increased 33.4% year-on-year while profit grew by 14.2% year-on-year.
Around 9:40 a.m., the stock was trading at Rs 531.65 apiece on NSE, losing 1.93% from its previous close. Meanwhile, the benchmark index, Nifty 50, was up around 0.2%.
Tempsens Instruments Q1 Results
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Revenue of Tempsens Instruments surged by 33.4% to Rs 119 crore from Rs 89 crore a year ago. Earnings before interest, taxes, depreciation, and amortisation rose 15.6% to Rs 23.8 crore from Rs 20.6 crore during the same period. However, the Ebitda margin declined to 20% from 23.1%. Net profit increased 14.2% to Rs 15.2 crore from Rs 13.3 crore.
The company's June-quarter performance showed broad-based growth, with revenue rising at a faster pace than Ebitda. The moderation in Ebitda margin indicates that the improvement in operating profit was lower than the growth in topline.
According to the company, the growth in the topline was primarily driven by its Temperature Sensing Solutions segment; revenue from this segment grew 42% year-on-year, and the Electric Heating Solutions segment, where revenue grew by 149% year-on-year.
However, due to an increase in employee benefits-related costs and an ESOP charge during the quarter, margin came under pressure.
Expansion, Exports In Focus
Tempsens has a diversified portfolio across temperature sensing solutions, specialised cables and electrical heating solutions. The company is focusing on expanding established product lines while developing newer offerings for areas such as battery energy storage, decarbonisation, fuel cells, green hydrogen and automotive emission control.
The company is also looking to expand its international presence, increase manufacturing capacity and automation, and pursue technology partnerships, joint ventures and subsidiaries. It is further targeting replacement and MRO business to build more stable, recurring revenue streams.
Tempsens Instruments Stock Price Movement
The stock was listed last month, and since then it has been down over 9.26%, which includes today's decline as well.
Currently, the company has a market cap of Rs 4,462.8 crore, and since the listing on the exchange, the stock has traded between Rs 505.05 and Rs 634.85 apiece on NSE.
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