Cosmic CRF Ltd achieved 108.64 % Volume Growth YOY basis

Cosmic CRF has begun the year on a very strong growth trajectory with a 100% year-over-year increase in volume growth, achieving the highest ever quarterly sales since inception. The momentum is likely to continue in the subsequent quarters. The management want to specifically highlight that , the order book for Cosmic CRF Ltd along with its subsidiary N.S. Engineering Projects Pvt Ltd has hit an all-time high of Rs. 550 crores and our funnel also remains extremely robust.

Key highlights on N. S. Engineering Projects Private Limited: We are on course to achieve the commissioning timeline of the plant by August 2024 which is six months ahead of our committed timeline. As per management estimation the total installed capacity in N.S. Engineering Projects Pvt Ltd stands at 35,000 tons per annum and 36,000 tons per annum in Cosmic CRF Ltd. The management also stands by its commitment to install the capacity to 70,000 tons per annum in N. S. Engineering Projects Pvt Ltd by March 2025.

Commenting on Q1 numbers: We ended the quarter with developing some prototype wagons and expectthe increase in volumes and a substantial increase in turnover, thus recording the highest ever volume number. We believe that the trend is likely to continue throughout the year. Our sales, EBITDA and profits have grown significantly, with our Q1 EBITDA surpassing last year's Q1 EBITDA substantially.

Therefore, we are on course to cross sales of FY 2023-24 substantially and hopefully surpass the EBITDA margins, expecting an improvement of profitability over FY24 due to higher volumes in Cosmic CRF Ltd and N.S. Engineering Projects Pvt Ltd. The Managementis confident and believes that operating leverage will play out in profitability numbers significantly with this kind of revenue growth.

The management reiterates that, the total installed capacity in Cosmic CRF Ltd has been achieved as per plan and expects the sales volume to touch its higher level at the end of the financial year 2024-25, as it has orders of about Rs. 119 crores in the pipe line.

The management is in a deep dive discussion with a major Russian Railway giant for a tech tie-up to fuel its robust ambitions to participate in the Wagon industry in a large way in the future.

Shares of Cosmic CRF Limited was last trading in BSE at Rs. 1989.55 as compared to the previous close of Rs. 2062.65. The total number of shares traded during the day was 7200 in over 34 trades.

The stock hit an intraday high of Rs. 2094.70 and intraday low of 1959.55. The net turnover during the day was Rs. 14356040.00.

Source : Equity Bulls

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