Logistics Company NECC Announced Stellar Q1FY25 Results

North Eastern Carrying Corporation (NECC) has reported an impressive financial performance for Q1 FY25. The company's consolidated net profit soared to Rs 3.67 crore for the quarter ended June 2024, marking a staggering 147% increase from Rs 1.49 crore in the corresponding quarter of the previous year. The total income for this quarter was approximately Rs 78 crore, while it was reported at over Rs 92 crore sequentially. For comparison, NECC had a total income of Rs 84 crore in the quarter ended June 2023.

NECC boasts a market capitalization exceeding Rs 360.32 crore. The stock settled at Rs 38.17 in the previous trading session, with a 52-week high of Rs 44.44 and a low of Rs 18.05. Over the past year, NECC shares have surged by about 95%. In 2024 alone, the stock has gained approximately 33%, and it has climbed an impressive 552% over the past five years. In the last month alone, the stock has risen by over 47%.

A significant highlight for NECC was securing a substantial order from the state-run Gas Authority of India (GAIL India Ltd) in December 2023. The company announced in a regulatory filing that it received a letter of acceptance from GAIL for the transportation of polymer. This contract, valued at Rs 52.48 crore, spans three years. The company stated, "We hereby inform you that we have got the letter of Acceptance from the Top Central Public Sector Undertaking under the Ministry of Petroleum and Natural Gas, Government of India, GAIL (India) Limited for transportation of polymer under a contract value of Rs. 52.48 crores for a period of 3 years."

Additionally, NECC recently disclosed that its promoter, Sunil Kumar Jain, acquired over 39 equity shares. According to an exchange filing, Jain acquired 39,55,062 warrants convertible into equity shares of NECC on April 4, through preferential allotment, amounting to shares valued at over Rs 10 lakh.

Reviewing the Q4 FY24 results, NECC's operating income for the March quarter was Rs 91.84 crore, compared to Rs 85.58 crore in the previous quarter and Rs 73.38 crore in the third quarter of the last financial year. The company's profit before tax stood at Rs 2.97 crore in the March quarter, down slightly from Rs 3.09 crore in the previous quarter but up from Rs 2.70 crore in the fourth quarter of the last financial year. Net profit for the fourth quarter of the last financial year was Rs 2.86 crore, compared to Rs 2.51 crore in the previous quarter and Rs 1.12 crore in the fourth quarter of the prior year.

NECC provides an extensive array of transport services across India, Nepal, and Bhutan. Their offerings include booking small parcels, full truck load consignments, and project consignments, including over-dimensional consignments (ODC). Additionally, NECC offers containerized movement of cargo, warehousing, packing and moving, and storage facilities.