In its F3Q2016 and 1H2016 results, Cemtrex Inc. (NASDAQ: CETX) posted figures that improved from year-ago periods. Now the management of the company believes that the trend of posting improving financial results has just begun.
If you listen to the company’s CEO Saagar Govil, the impression you get is that the acquisitions that they are making are already paying off and the trend should continue in the future. The strategy that Cemtrex is currently pursuing is that of strengthening its core operations and enhancing organic topline growth through strategic acquisitions.
It turns out that Cemtrex Inc. (NASDAQ: CETX)’s latest acquisition in Germany played a major role in driving gains in the latest quarter. Govil said that the support from the Germany subsidiary went a long way to validate their strategy of pairing internal growth efforts with attractive buyouts.
Key highlights from Cemtrex Inc. (NASDAQ: CETX)’s F3Q
Cemtrex Inc (NASDAQ: CETX) said that it completed the acquisition in Germany of electronic manufacturing services provider (EMS) that has enabled it to establish a subsidiary in Germany. The company said that the acquisition has significantly helped it to strengthen its position in the EMS space.
Through the German unit, Cemtrex was able to ink an attractive contract in the automotive industry with a strategic customer. In total, the company received $12 million in new orders coming from both new and existing customers during the month of June.
What transpired in F3Q?
Cemtrex generated net sales of $24.7 million in the June quarter, which is its F3Q2016. That marked YoY revenue increase of 69%. The strong revenue growth confirmed that the company is on the right track in its efforts to improve topline figure.
Not only is expansion helping Cemtrex to drive topline growth, but it is also unlocking economies of scale. As such, Cemtrex said that its gross profit rose 92% YoY in the latest quarter. That helped net income to expand by 77.5% YoY to more than $1.47 million.
Cemtrex Inc. (NASDAQ: CETX) also provided highlight on how it fared in 1H2016. Net sales in the six-month period rose 33% while net income improved 26.5%.