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Shares of North Eastern Carrying Corporation (NECCL) surged over 4% on Tuesday, reaching ₹20.74 per share following the release of its Q3 FY25 financial results.
Stock Performance and Investor Returns
NECCL has been a rewarding bet for long-term investors, with its stock skyrocketing by over 400% in the last five years—from ₹3.61 to ₹20.7. However, in the past year, the stock has dropped 36.04%, primarily due to sluggish long-term sales growth and high debt levels.
Financial Results: A Mixed Picture
For Q3 FY25, NECCL reported a 22.7% year-on-year (YoY) decline in net profit, which fell from ₹2.51 crore in the same quarter last year to ₹1.94 crore. On a quarter-on-quarter (QoQ) basis, the profit after tax (PAT) took a sharper hit, declining 36.8% from ₹2.87 crore in the September quarter.
Despite the recent setback, the company has witnessed an impressive 64.6% growth in PAT for the nine-month period, jumping from ₹5.15 crore to ₹8.49 crore YoY.
On the revenue front, NECCL’s operations dipped slightly, with total revenue declining 5.2% YoY from ₹85.58 crore in December 2023 to ₹81.05 crore in December 2024.
Debt Reduction and Financial Health
A positive takeaway from NECCL’s financial report is its debt-to-equity ratio, which has now dropped to 0.44 times—the lowest in the past five half-yearly periods. This reflects the company’s efforts to reduce debt and adopt a more conservative financial approach.
Company Overview
Founded in 1984, NECCL is a leading logistics and transportation firm in India, with a vast network of over 250 branches nationwide. The company specializes in freight forwarding, logistics, and goods transportation, offering services ranging from small parcel deliveries to large-scale project consignments.
With its advanced ERP software, NECCL ensures efficient freight management and provides customized logistics solutions across industries, including mining logistics and over-dimensional consignment transportation.
While NECCL has demonstrated strong long-term growth, recent challenges in revenue and profitability highlight the need for sustained operational improvements. However, its focus on debt reduction and technological advancements could position the company for future stability and growth. Investors should closely monitor sales performance and market trends before making any decisions.
