Frontier Springs Limited, a small market cap auto ancillary company, recently announced its March quarter results and its shares hit an upper circuit of 20 per cent after that. The company reported a profit of 131 per cent on a yearly basis (YOY) and also announced a dividend of Rs 1.8 per share. This news was huge for investors, and it created a lot of stir in the market. Let us understand in detail what this company did that led to such a sharp rise in its shares.
Company Information:
Frontier Springs Limited was started in 1981. Initially, this company used to manufacture leaf springs and laminated bearing springs for the automobile and railway sectors. But over time it diversified its products and now this company manufactures high-tech products like hot-coiled springs, air springs, forgings and LHB springs. These are used especially in the railway and heavy engineering sectors.
Today Frontier Springs is one of the leading companies manufacturing special springs and components for Indian Railways. The company’s clients are also very prestigious, including Chittaranjan Locomotive Works, Banaras Locomotive Works, Patiala Locomotive Works, RCF Kapurthala, MCF Rae Bareli, BHEL, Titagarh and Integral Coach Factory. Apart from this, Frontier Alloy Steels Ltd is also one of its clients. This strong customer network shows how strong the company’s hold is in the industry.
Q4 FY25 Quarter Results:
The company performed brilliantly in the March 2025 quarter i.e. Q4 FY25. The company’s total operational income (Revenue from Operations) grew by 58.77 percent to Rs 70.08 crore, as against Rs 44.14 crore in the same quarter last year. It has also increased by 20.29 percent on a quarter-on-quarter (QoQ) basis, as the revenue in Q3 FY25 was Rs 58.26 crore.
Now if we talk about net profit, then in Q4 FY25, the net profit of the company increased by 130.89 percent to Rs 11.66 crore, which was only Rs 5.05 crore in Q4 FY24. Compared to the previous quarter i.e. Q3 FY25, at that time the profit was Rs 8.73 crore and now it has also registered an increase of 33.56 percent.
Along with earnings, earnings per share (EPS) has also increased very rapidly. While EPS was Rs 13.54 in Q4 FY24, now it has increased by 115.29 percent to Rs 29.15. This shows that the profit on every share of the company has increased significantly, which is a good sign for investors.
Declaration of Dividend:
Frontier Springs has decided to pay a dividend of Rs 1.8 per share for FY25. This is the final dividend of 18 per cent on equity shares with a face value of Rs 10. The declaration of dividend plays a big role in attracting investors, as it directly benefits the shareholders.
Performance of the entire financial year FY25:
The company has also shown tremendous growth in the entire financial year. While the total income of the company was Rs 135.41 crore in FY24, it increased to Rs 231.34 crore in FY25, i.e. a spectacular growth of 70.84 percent. Similarly, the net profit in FY24 was Rs 12.98 crore, which increased by 167.03 percent to Rs 34.66 crore in FY25. These figures show that the company is not only doing well on a quarterly basis, but the performance of the whole year has also been very strong.
Stock movement:
On Monday, shares of Frontier Springs hit an upper circuit of 20 per cent and the share price rose from Rs 2,565.15 to Rs 3,078.15. The market capitalization of the company is now around Rs 1,212.33 crore. For small investors, this can be a sign that the company is growing rapidly and its shares can give good profits in the future.
Products and technology features:
Frontier Springs manufactures special types of LHB springs not only for conventional railway coaches but also for modern trains like Vande Bharat Express. Apart from this, the company also manufactures air springs, which improve the suspension quality of trains and provide comfortable travel to passengers. Products like hot-coiled compression springs and heavy forgings reflect the technical capabilities of the company.
What matters to investors:
Before investing in any stock, it is important to see what is the background of the company, what is its fundamentals, and what is its position in its sector. Frontier Springs has proved with its strong customer list, technical expertise, and financial results that this company has the ability to show growth in the future as well. However, any investment involves risk, so always consult your financial advisor before investing.
Conclusion:
Frontier Springs Limited has performed brilliantly in the March quarter, not only increasing profits and revenues, but has also made its investors happy by announcing dividends. The company’s technical expertise and strong hold in the railway sector make it a reliable option for the future. If you want to invest in a strong fundamental company for the long term, then you can consider Frontier Springs Limited, but invest only after proper advice and research.