The non-ferrous metals sector stands as a cornerstone of the Indian economy, making a substantial contribution to the country’s gross domestic product (GDP). Ranking as the world’s second-largest producer of aluminium, trailing only behind China, India is poised for a surge in demand for these metals.
This anticipated boost is largely attributed to governmental initiatives such as ‘Make in India’ and the ‘Smart City’ project, which are projected to significantly elevate the consumption of non-ferrous metals within the nation.
Cubex Tubings Ltd. is a company that has carved out a niche for itself in the non-ferrous metals industry. With a legacy that spans over four decades, Cubex Tubings has established itself as a reputable manufacturer of copper alloy tubes, wires, sheets, flats, and rods.
The article aims to provide an in-depth analysis of Cubex Tubings’ Q4 results, shedding light on the intricacies of their performance metrics and the subsequent market reaction.
About Cubex Tubings Ltd
Cubex Tubings Limited is a prominent producer of copper alloy materials, including tubes, wires, sheets, flats, and rods, catering to a variety of industrial applications such as boilers, condensers, heat exchangers, medical equipment, infrastructure projects, power generation, and defence requirements. The company’s manufacturing facility is optimally positioned to ensure swift dispatch of products to international shipping ports.
The company’s copper alloy tubes are predominantly utilised in power plants, petroleum refineries, and nuclear facilities. Additionally, Cubex Tubings’ rods and wires are essential components for electrical and construction industries. The firm also collaborates with specialised industries and small-scale enterprises that fulfil the stipulated minimum order criteria.
Harnessing the collective expertise and dedication of a vast team of skilled professionals and engineers, Cubex Tubings is committed to delivering top-tier copper alloy products at competitive prices. The company prioritises rapid service and transactional efficiency. The sales division is attuned to the pressing timelines of clients, striving to offer the quickest possible responses for quotations and product delivery.
As of June 1, 2024, Cubex Tubings Ltd has a market capitalisation of ₹128.44 crores. The company’s shareholding arrangement as of March 31, 2024 is as follows:
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Cubex Tubings Q4 and FY24 result financial highlights
Here are a few of the most important points from the company’s quarterly report:
- Revenue decline quarterly: Cubex Tubings Limited experienced a decrease in revenue, moving from ₹57.10 crores in Q3 FY24 to ₹50.26 crores in Q4 FY24. This represents an 11.98% reduction in revenue quarter-over-quarter.
- Stable net profit quarterly: Despite the drop in revenue, the company managed to maintain its net profit steady at ₹1.01 crores, showing no change from the previous quarter.
- Revenue growth annually: Cubex Tubings Limited witnessed a significant increase in revenue, escalating from ₹191 crores in FY2023 to ₹223 crores in FY2024. This marks a robust growth of 16.75% year-over-year.
- Net profit surge annually: The company’s net profit saw an impressive rise, climbing from ₹3 crores in FY2023 to ₹4 crores in FY2024, translating to a 33.33% leap.
Cubex Tubings Ltd’s quarterly performance
Here are the principal financial indicators that showcase the company’s performance for the quarter, compared to the preceding one.
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 50.26 | 57.10 | -11.98 |
| Operating profit | 1.86 | 2.27 | -18.06 |
| Profit before tax | 0.96 | 1.48 | -35.14 |
| Net profit | 1.01 | 1.01 | 0.00 |
| EPS | 0.71 | 0.71 | 0.00 |
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Cubex Tubings Ltd’s annual performance
In comparison to the previous year, the following are the company’s most important financial indicators:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 223 | 191 | 16.75 |
| Operating profit | 8 | 5 | 60.00 |
| Profit before tax | 5 | 4 | 25.00 |
| Net profit | 4 | 3 | 33.33 |
| EPS | 2.79 | 1.85 | 50.81 |
Market reaction
On May 20, 2024, the business announced the 4th quarter results for the fiscal year 2024. Cubex Tubings Ltd’s share price started the following trading day at ₹105.05, a 2% decline from the previous day’s close of ₹107.20. After that, the Cubex Tubings share price began to fall and hit a 52-week low of ₹89.70 on May 31, 2024.
Over the past five years, the Cubex Tubings share price has yielded a significant return, amounting to 603.53%.
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Peer analysis
Let’s see how Cubex Tubings Ltd stacks up against its peers in terms of these critical financial metrics:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| Cubex Tubings Ltd | 89.7 | 128 | 32.2 | 5.01 |
| Siyaram Recycling Industries Ltd | 69.4 | 130 | 17.3 | 8.91 |
| Madhav Copper Ltd | 39.2 | 107 | 86.6 | 1.44 |
| Precision Metaliks Ltd | 43.6 | 70.9 | 10.5 | 14.0 |
| Shalimar Wires Industries Ltd | 21.8 | 93.2 | 63.55 | 6.75 |
| Baroda Extrusion Ltd | 5.59 | 83.3 | 92.78 | -0.76 |
| Southern Magnesium & Chemicals Ltd | 224 | 67.2 | 20.2 | 6.55 |
| POCL Enterprises Ltd | 345 | 192 | 10.8 | 12.7 |
Bottomline
Cubex Tubings Ltd. stands as a resilient player within the non-ferrous metals sector, a cornerstone of India’s burgeoning economy.
Despite facing challenges in the latest quarter, with a noticeable decline in revenue and operating profit, Cubex Tubings Ltd. has demonstrated stability in its net profit, reflecting effective cost management and operational resilience. Annually, the company showcased robust growth, with significant increases in both revenue and net profit, highlighting its capability to scale and enhance profitability over time.
The market’s initial negative reaction to the Q4 results, reflected in the drop in share price and subsequent hitting of a 52-week low, underscores the volatility and investor sensitivity to quarterly performance fluctuations.
Looking ahead, the future of Cubex Tubings Ltd. hinges on several factors: the company’s strategic response to market demands, the evolution of the non-ferrous metals industry, and the broader economic landscape. With governmental initiatives like ‘Make in India’ poised to fuel demand, Cubex Tubings has the potential to harness growth opportunities. However, it must also navigate the obstacles presented by market dynamics and investor demands.
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