Shares of Cello World dropped nearly 6 percent on November 13 as the company posted flat earnings for Q2FY25, amidst challenges in export demand.
By 10:55 AM, shares traded 4 percent lower at Rs 811. Although Cello World has gained just over 2 percent year-to-date, it has underperformed compared to the Nifty 50, which has risen 9 percent in the same period. Today marks the fourth consecutive day of decline for Cello World.
Cello World's consolidated net profit for the quarter ended September rose by 0.2 percent year-on-year but declined by over 2 percent quarter-on-quarter to Rs 81.6 crore. Revenue from operations for Q2FY25 decreased by 6 percent year-on-year and by 1 percent quarter-on-quarter to Rs 490 crore.
Commenting on the results, Pradeep Rathod, Chairman & Managing Director of Cello World, said, "In H1FY25, the company delivered steady performance by demonstrating consistent revenue growth and maintaining profitability despite several headwinds on export demand, particularly for writing instruments."
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"Looking ahead, the second half of FY25 has started on a positive note, with strong sales momentum in October. Given the solid off-take in the early part of the Q3 due to the robust festive season demand, we remain confident in our ability to achieve mid teen growth for FY25," Rathod said.
Cello World's EBITDA for Q2FY25 was flat year-on-year at Rs 131.9 crore, with the EBITDA margin steady at 23.9 percent for the quarter.
Cello World has launched a modern glassware manufacturing facility in Falna, Rajasthan, with an annual capacity of 20,000 metric tonnes. The plant has begun trial runs, with full commercial production to follow soon.
Cello World operates across consumer houseware, stationery, molded furniture, and glassware segments, with 14 manufacturing facilities at six locations across the country, enabling in-house production of its diverse product line.
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