Krystal Integrated Services stock up 5% on strong Q4 results; skyrockets 200% YTD

Shares of Krystal Integrated Services Ltd. witnessed a significant increase of over 5% during Tuesday's trading session. The surge followed the company's release of favorable financial results for the quarter and fiscal year concluding on March 31, 2024. This marks the company's maiden quarterly report since its initial public offering on the Dalal Street stock exchange in March of this year.

At 12:40 PM IST, Krystal Integrated Services' shares climbed 3% to ₹773.15 on the National Stock Exchange (NSE). The stock has surged over 200% in 2023, multiplying investors' wealth three-fold within approximately three months. Krystal Integrated Services currently has a market capitalization of close to ₹1,100 crore.

In the March 2024 quarter, the company's net profit surged by 70.3% year-over-year (YoY) to ₹15.7 crore. During the quarter, its profit margins widened by 58 basis points (bps) from 4.8% to 5.4%.Krystal's revenue from operations witnessed a 52% YoY growth to ₹292.2 crore in Q4FY24. The company's EBITDA surged by almost double to ₹18.8 crore in the quarter under review. The EBITDA margin expanded by 149 bps YoY to 6.4% during the quarter. 

After the declaration of results, Krystal Integrated Services' shares surged by 5.32% to ₹790.55 on Tuesday, leading to a market capitalization of nearly ₹1,100 crore. The stock closed at ₹750.25 on Monday, marking a 5% increase for the day. The stock has exhibited an 11% rise in the preceding two trading sessions. 

Krystal Integrated's financial results for the year ending March 31, 2024, revealed a 45.2% year-over-year (YoY) surge in net profit to ₹49 crore. Revenue from operations increased by 45.1% YoY to ₹1,026.8 crore, while EBITDA witnessed a 37.8% growth to ₹68.7 crore.

The company board has recommended a dividend of ₹1.50 per equity share, 15% of the face value ₹10 each, subject to shareholders’ approval.

"The growth mainly came from a robust increase in our order book as we continued to secure new contracts. We are strategically diversifying our business by expanding our corporate partnerships to reduce our reliance on government contracts," said Sanjay Dighe, CEO & Whole Time Director, Krystal Integrated Services.

"We are broadening our service offerings to include a more comprehensive portfolio. Overall, we have entered the new fiscal year on an optimistic note and aim to sustain this momentum in the coming quarters. I would like to thank the entire team at Krystal and all our stakeholders for their continued support," he added. 

Krystal Integrated Services is a comprehensive facilities management company specializing in a diverse range of sectors. These include healthcare, education, public administration (encompassing state government entities, municipal bodies, and other government offices), airports, railways, metro infrastructure, and retail.

Krystal Integrated Services successfully raised ₹300.13 crore through its initial public offering (IPO), selling shares at ₹715 each. Since then, the stock has appreciated by 10% from its IPO price. While it reached a peak of ₹1,023.75 in April, the stock has subsequently experienced a correction of approximately 30%.