ECOS (India) Mobility shares slip 5% on weak Q1 FY25 operational show | News on Markets

3 min read Last Updated : Sep 25 2024 | 10:35 AM IST

ECOS (India) Mobility Q1 results impact: Shares of newly-listed company, ECOS (India) Mobility & Hospitality dropped up to 4.72 per cent to hit an intraday low of Rs 474.10 per share on Wednesday, September 25, 2024.

The fall in the share price came on the back of weak operational performance in the June quarter of financial year 2025 (Q1FY25).

At the operating level, earnings before interest, taxes, depreciation and amortisation (Ebitda), excluding Other Income, fell 5.9 per cent year-on-year (Y-o-Y) to Rs 20.7 crore, from Rs 22 crore in the same quarter a year ago (Q1FY24).

Ebitda margin, meanwhile, contracted 300 basis points (bps) to 13.9 per cent in Q1FY25, from 16.9 per cent in Q1FY24.

The company’s profit after tax (PAT) also dropped to Rs 13.5 crore in the June quarter of FY25, from Rs 13.9 crore in the June quarter of FY24.

ECOS (India) Mobility’s revenue from operations, however, soared 14 per cent annually to Rs 148.9 crore in Q1FY25, as against Rs 130.6 crore in Q1FY24.

Rajesh Loomba, chairman and managing director of ECOS said, “I would like to thank all our stakeholders including the entire ECOS team for their continued support & faith in us. I am happy to share that the Q1FY25 performance was in line with our expectations. Our revenue from operations grew 14 per cent year on year in the first quarter. This is despite the one- time business that we carried out during the G20 convention in Q1FY24. Our business continues to gain traction, adding new customers as well as increasing our wallet share from existing customers in both chauffeured car rentals and employee transportation solutions.”

Started in 1996, today we are the largest chauffeur driven mobility provider to over 1,100 corporate customers, including Fortune 500 companies in India, individuals, Travel and Tourism companies, Hotels and government bodies for more than 25 years, Loomba added.

The company has a Pan-India presence in 109 cities through its own vehicles and domestic partners and service the global car rental requirements through its global network of vendors in over 30 countries. It currently has a fleet of more than 12,000, economy to luxury cars, minivans and luxury coaches.

“Going forward we are focusing on profitable growth driven by increasing revenue from existing customers, adding new customers, investing in our sales team, building our brand while expanding in smaller towns & cities and adding more services in existing networks. In this line, we remain committed to driving long term sustainable shareholder value,” Loomba said.

Listing details

Earlier this month, ECOS Mobility shares listed at Rs 391.30 on the BSE, reflecting a premium of 17.15 per cent from the issue price of Rs 334. On the NSE, shares of ECOS Mobility listed at a premium of 16.76 per cent at Rs 390

Thus far, the ECOS Mobility scrip has surged over 27 per cent since listing on September 4, 2024.

At 10:23 AM, shares of the company were trading 2.94 per cent lower at Rs 482.95 per share. In comparison, BSE Sensex was trading flat at 84,902.48 levels.

First Published: Sep 25 2024 | 10:28 AM IST