Modison Metals

Modison Metals manufactures and markets electrical contacts for low, medium, high, and extra high voltage switchgear industries. It is a market leader with almost a monopoly in HV segment. Its revenue breakdown shows that 35% of the topline comes from HV and MV segment and 65% from LV. In the current fiscal, it has started silver salts as a new vertical.

For Q3FY17, the company posted a 25% (YoY) rise in net sales at Rs.49 crore. Exports showed a 20% increase at Rs.7 crore but its contribution to total revenue fell 0.6%. EBITDA for the quarter was at Rs.7 crore, up 29% while margins rose marginally from 13.5% to 13.97%. There was a 173% jump in other income at Rs.2 crore. Consequently, it ended Q3 with a net profit at Rs.4.35 crore, up 72%.

The good news – its 9MFY17 net profit at Rs.11.33 crore is sure to surpass FY16 net profit of 10.88 crore. Its equity is tiny at Rs.3.25 crore and promoters hold 51% stake.