Schneider Electric Q1FY24 Results – Hit a fresh 52-week high

Indian frontline indices were trading down after the RBI chose not to modify repo rates, however, the CPI inflation prediction for FY24 was lifted from 5.1% to 5.4%. Telecommunications, fast-moving consumer goods, and banking sectors performed the worst today, while power and utilities were the only gaining sectors. 

Schneider Electric Infrastructure, a heavy electrical equipment manufacturer, attracted investors after announcing robust quarter performance. As a result of greater investor buying interest, shares climbed more than 7%, reaching a 52-week high of Rs 309.90 per share on the BSE.  

Considering the company’s quarterly performance, it reported strong growth of 33.32% from Rs 371.48 crore registered in Q1FY23, recording total revenue of Rs 495.25 crore in Q1FY24. It has reported operating profit growth of 76%. Compared to the same quarter last year, the net profit for the first quarter of FY24 surged 31.67%, from Rs 26.52 crore to Rs 34.92 crore. 

The stock has a much higher PE, yet it is still below the industry average and provides healthy returns on equity. Shares of the company have soared more than 150% over the past year, and in only three months, they have delivered stellar returns of about 62%!  

Incorporated in 2011, Schneider Electric Infrastructure is in the business of designing, developing, constructing, and maintaining cutting-edge systems and products for the electricity network. Schneider Electric Infrastructure manufactures a wide range of products, including transformers, power transformers, switchgear, protection relays, and smart city applications.    

The electrical equipment industry has found a new market in semi-urban and rural India as a result of the country’s improved electricity access. A favourable environment for the industry is being enabled by tailwinds like the government’s emphasis on infrastructure, the real estate sector’s revival and healthy demand visibility across numerous end-user industries. 

Keep a close eye on this stock for the upcoming sessions!   

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.