On November 13, shares of Cello World declined by nearly 6% following the announcement of flat Q2 earnings for FY25. By mid-morning trading, shares had fallen 4% to ₹811. This marks the fourth consecutive day of decline for Cello World in the stock market. The company’s stock has gained over 2% since the start of the year but has underperformed against the Nifty 50, which saw a 9% rise in the same period.
Quarterly earnings report
Cello World’s consolidated net profit rose marginally by 0.2% year-on-year (Y-o-Y), while quarter-on-quarter (Q-o-Q) net profit saw a decline of over 2%, standing at ₹81.6 crore for Q2FY25. The revenue from operations in Q2FY25 decreased by 6% Y-o-Y and dropped by 1% Q-o-Q, reaching ₹490 crore for the quarter.
EBITDA and margins
Cello World reported an EBITDA of ₹131.9 crore for Q2FY25, reflecting a flat performance year-on-year. The EBITDA margin remained steady at 23.9% during the quarter, showing the company’s stability in maintaining operational efficiency despite the market challenges.
New manufacturing facility in Rajasthan
Cello World recently launched a modern glassware manufacturing facility in Falna, Rajasthan. This new facility, with an annual production capacity of 20,000 metric tonnes, has begun trial runs and is expected to start full-scale commercial production soon. This facility is part of Cello World’s strategy to expand its production capabilities in the glassware sector.
Diverse product segments and in-house manufacturing
Cello World operates across a range of product categories, including consumer houseware, stationery, moulded furniture, and glassware. The company currently runs 14 manufacturing facilities located across six regions in India, allowing for in-house production of a diverse product line that supports the company’s broad portfolio.
Share market investment performance
Cello World’s stock performance reflects the impact of current earnings and export challenges on the share market investment landscape. With the company’s Q2 earnings showing limited growth, the recent decline in share price points to investor reactions in the broader share market investment context.
As Cello World works to balance domestic demand with export pressures, market analysts will likely continue monitoring its performance closely.
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