Mumbai: Shares of electrical appliances maker Crompton Greaves slipped for the second consecutive day on Wednesday after the company reported a 58 percent decline in consolidated net profit for the first quarter of this fiscal.
After an over 14 percent fall on Tuesday, shares of Crompton Greaves plunged by another 12 percent to a 52-week low of Rs 182.75 on the Bombay Stock Exchange on Wednesday. On the National Stock Exchange, the stock met with a similar fate, tumbling by another 12 percent after a 14 percent fall on Tuesday to a 52-week low of Rs 181.80. The stock, however, regained some lost ground later and was trading at Rs 184.60, down 11.10 percent, on the BSE and at Rs 182.10, lower by 12.58 percent, on the NSE at 1116 hours.
Crompton Greaves reported a sharp decline in its profits on account of losses booked in its subsidiaries and lower margins in its domestic business. The company's top line grew by 9 percent while its margins have shrunk by 5.5 percent. Consumer sales logged slower growth, while power and industrial segment accounted for a reduction in margins. Against an estimate of Rs 210 crore, Crompton Greaves posted a net profit of Rs 77.8 crore.
Marketmen said the decline in the stock was a knee-jerk reaction to the poor first quarter numbers of the company. Crompton Greaves on Tuesday reported a 58.36 percent decline in consolidated net profit to Rs 79.47 crore for the quarter ended June 30, mainly due to a rise in raw material expenses.
The company had posted a net profit of Rs 190.85 crore in the corresponding quarter last year. Meanwhile, both the 30-share Sensex and wide-based Nifty were trading in the positive zone in the first half of trade on Wednesday.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Updated Date: Dec 20, 2014 13:56:03 IST