Deepak Builders & Engineers India’s stock saw a 9% rise on Monday. The company’s share was trading around INR 157 per share, reflecting a 9% increase from its previous close of INR 143 per share. Deepak Builders announced its third-quarter results on 15 February, which were commendable. The company’s net profit increased by 52.82% to INR 16.26 crore, boosting investor confidence in the company.
Deepak Builders IPO – Q3 FY 25 Financial Performance
Deepak Builders Q3 FY25 results highlights a net profit of INR 16.26 crore which is a 52.82% increase from INR 10.64 crore in the same quarter last year. The company also saw an increase in total revenue, total revenue rose to INR 131.63 crore from INR 107.86 crore in Q3 FY 2023-24.
Key financial highlights:
- Sales revenue: INR 130.55 crore (22.02% YoY growth)
- Total income: INR 131.63 crore
- Expenditure: INR 110.16 crore
- Profit before tax (PBT): INR 21.47 crore (53% YoY growth)
- Net profit (NP): INR 16.26 crore (52.82% YoY growth)
- Earnings per share (EPS): INR 3.74 (vs. INR 2.96 last year)
For the nine-month period ending 31 December, Deepak Builders reported:
- Total sales: INR 357.47 crore (up from INR 322.47 crore)
- Total revenue: INR 360.73 crore (up from INR 325.46 crore)
- Net income: INR 45.55 crore (vs. INR 26.59 crore last year)
- EPS: INR 11.86 (compared to INR 7.41 last year)
Deepak Builders IPO – Growth Drivers
- Higher Sales Revenue – A 22.02% YoY increase in sales reflects that the company has a strong demand and efficient project execution.
- Stronger Profitability – The company’s cost management strategy and operational efficiency contributed to a higher net profit margin.
- EPS Growth – Rising from INR 2.96 to INR 3.74, indicating increased shareholder value.
- Operational Efficiency – Operating profit margin expanded to 23.07% from 21.05%, signalling better cost control and improved profitability.
Market Reaction & Future Outlook
The strong earnings report triggered a 9% rally in Deepak Builders’ stock price on 17 February 2025, highlighting investor confidence. With the construction and engineering sector maintaining steady demand, the company is well-positioned for continued growth.
Deepak Builders and Engineers made its stock market debut on 28 October 2024, the INR 217.21 crore issue was oversubscribed 42X due to strong interest from investors. However, due to the stock market volatility, the IPO was listed at 20.22% down.
Analysts expect sustained earnings momentum, supported by ongoing projects, strategic execution, and an improving financial profile. Investors are watching closely for the company’s next moves, as further growth catalysts could emerge in the coming quarters.
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