Paramount Communications Limited — Investor Meet, 15-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Paramount Communications Limited reported revenue from operations of ₹392 crores in Q3 FY25, a 38% increase from ₹284 crores in the same quarter last year. EBITDA grew 45.5% to ₹37.3 crores, with a margin of 9.44%, up from 8.98%. Profit before tax rose 38% to ₹33.7 crores, while profit after tax grew slightly by 2.6% to ₹22.6 crores, impacted by a lower PAT margin of 5.7% compared to 7.7% last year due to tax liabilities. In the nine months ending December 31, 2024, revenue reached ₹1,069 crores (up 43%), with EBITDA growing 50% to ₹100.8 crores and a PAT of ₹68.2 crores (up 21.7%).

**Future Outlook and Growth Drivers:** Management aims for a minimum CAGR of 30% over the next five years, targeting revenues of over ₹5,000 crores by FY2030. They foresee significant growth from U.S. market exports, which are expected to make up 40% of total revenues as capacity expands.

**Order Book and Operational Updates:** The current order book stands at ₹620 crores, with domestic orders at ₹386 crores and exports at ₹234 crores, primarily from the U.S. The company reported a production volume increase of 57%, largely driven by a rise in metal consumption.

**Analyst Q&A Insights:** Analysts probed into profitability and competitive dynamics, with management confident that upcoming U.S. tariffs could benefit Indian exporters. Queries about capital allocation revealed plans for a ₹250 crores new plant set to contribute significantly to revenue by FY27. Management confirmed focus on maintaining competitive margins despite fluctuations in commodity prices, adhering to a conservative order management approach.

**Market or Regulatory Updates:** U.S. tariff policies were discussed, with management positing that tariffs could enhance the competitiveness of Indian cables, suggesting a positive outlook for exports.

**Strategic Focus Areas:** Paramount is positioned for strong growth through a balance of domestic and export strategies, with an emphasis on innovation and production capabilities. The focus remains on maximizing production efficiency while expanding capacity.

**Investor Insight:** The company shows robust growth potential with strong financial fundamentals and strategic initiatives aligned with market demand. This positions it favorably for a ‘buy’ as it continues to exploit opportunities in export and domestic markets.