Chandragiri Hills Limited (CGH) Q4 2024/25 Financial Review: A Closer Look at Profitability and Market Performance

Total Revenue

Chandragiri Hills Limited reported a 3.39% decline in total revenue year-on-year for Q4 2024/25, with total revenue reaching Rs. 932,849.15 thousand. This is a decrease compared to Rs. 1,010,231.88 thousand in the same period last year. The company faced challenges in revenue growth, reflected by negative growth periods from Q3 to Q1 2024/25, with Q3 seeing an 11.15% decrease. The decline in revenue suggests a tough quarter for the company, which may have faced seasonal or market-related challenges.

Gross Profit

Despite the drop in total revenue, Chandragiri Hills maintained strong gross profit margins, reporting Rs. 539,041.22 thousand in Q4 2024/25, compared to Rs. 572,769.66 thousand in Q4 2023/24. The gross profit margin of 57.78%for Q4 indicates efficient cost management, even though it slightly dipped from 56.70% last year. This suggests that while the company’s revenue was under pressure, its operational efficiency helped mitigate the decline in profitability.

Net Income

Chandragiri Hills posted a net income of Rs. 210,895.50 thousand in Q4, which marks a substantial increase from Rs. 223,387.99 thousand in the previous year. The net margin improved to 22.61%, which is a healthy result compared to 22.11% in Q4 2023/24, indicating a positive net income despite the drop in revenue. This suggests the company was able to control costs effectively, leading to better profitability even as its revenue slightly decreased.

Return on Assets (ROA) and Return on Equity (ROE)

The Return on Assets (ROA) stood at 5.77% in Q4 2024/25, a slight decrease from 6.07% in the previous year. This indicates that the company was still effectively utilizing its assets to generate earnings, despite a minor drop in efficiency. The Return on Equity (ROE) decreased slightly to 13.68% from 16.28% last year, suggesting that the return for shareholders was somewhat lower, though still strong.

Earnings Per Share (EPS) and Price-to-Earnings (P/E) Ratio

Earnings Per Share (EPS) increased to 13.75 for Q4 2024/25, compared to 14.56 in Q4 2023/24. This increase in EPS is a positive sign, reflecting better profitability. However, the Price-to-Earnings (P/E) ratio increased significantly to 69.54, compared to 62.36 in Q4 2023/24. The rise in the P/E ratio indicates that the market has high expectations of the company’s future growth, although the valuation remains relatively high compared to earnings.

Book Value and Market Value per Share

The book value per share increased to Rs. 107.61 from Rs. 95.39 in Q4 of the previous year, reflecting a stronger equity position. The market value per share saw an increase to Rs. 956.02 from Rs. 908.00 in the previous year, indicating that the market views the company positively despite its challenges in revenue growth. The market price is significantly higher than the book value, suggesting investor confidence in the company’s long-term prospects.