During Friday’s trading session, the shares of the leading manufacturer of radio frequency equipment surged 9.4 percent to Rs. 377.05 on NSE, after the company launched new products at the ongoing India Mobile Congress (IMC) 2024, aimed at enhancing connectivity in critical sectors.
With a market cap of Rs. 575.8 crores, at 03:07 p.m., the shares of Frog Cellsat Ltd (NS:FROG) were trading in the green at Rs. 371.95, up by nearly 8 percent, compared to its previous closing price of Rs. 344.5.
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What’s the news:
Frog Cellsat Limited launched new products namely, the Smart Mini Booster, the 5G Active DAS Solution, and a Very High Frequency (VHF) repeater, at the ongoing India Mobile Congress (IMC) 2024, aimed at enhancing connectivity in critical sectors, according to the latest filings.
The company stated that its 5G Active DAS Solution is designed to provide seamless connectivity in large-scale venues such as airports and metro systems, aligning with the evolving needs of modern communication networks.
Additionally, Frog Cellsat highlighted its Noise Shield solution, which eliminates interference from uplink signals to improve cell coverage, voice quality, and data capacity.
During trials, the company reported a noise reduction of up to 40 dB and a 400 percent increase in data traffic at various sites. The Active DAS solution supports eight different frequency bands and can support up to four telecom operators at the same time.
Previous News:
On 2nd August, Frog Cellsat Limited received a purchase order from Metrotel Teleworks Private Limited for Mumbai International Airport Limited (MIAL).
The order was for an Active DAS system to provide 4G and 5G Mobile network coverage at the Chatrapati Shivaji Maharaj International Airport in Mumbai and ancillary buildings.
According to the filings, The value of the business is more than Rs. 31 crore and is expected to be executed by December 2024.
Financials:
The company experienced a marginal growth in its revenue from operations, showing a year-on-year increase of around 7.8 percent from Rs. 33.4 crores in Q1 FY24 to Rs. 36 crores in Q1 FY25, led by robust execution of orders.
However, the net profits decreased during the same timeframe from Rs. 2.7 crores to Rs. 1.2 crores, representing a decline 55.6 of percent YoY.
Order Book Growth:
During Q1 FY25, the order book value reached Rs. 810 million, signifying a robust demand for Frog Cellsat’s products and services, indicating strong customer confidence and market traction.
This marks a substantial increase from the previous order book, which was Rs. 650 million as of March 31, 2023.
Management Guidance:
According to the annual report of FY24, the company aims to achieve a revenue target of Rs. 500 crore through new initiatives, particularly in interference mitigation solutions, EMS services, and products like Optical Network Units (ONUs).
Additionally, the ongoing increase in capital expenditure (CAPEX) within the telecommunications sector presents an opportunity for Frog Cellsat to make significant contributions with its innovative offerings.
For FY25, the company expects revenue growth of 25 to 30 percent, driven by effective management of a growing order book and rising demand for enhanced network coverage services.
Further, EBITDA margins are projected to range between 14 and 15 percent for FY25, benefiting from increased operational scale and associated efficiencies.
About the company:
Incorporated in 2004, Frog Cellsat Limited is engaged in the business of manufacturing cost-effective in-building coverage solutions and mobile network accessories for mobile service providers and operators.
The company caters to both domestic and international markets, and also provides installations, repair and maintenance services.
Written by Shivani Singh
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