Amtek Auto hits 6-year low

Amtek Auto has been holding the mantle of top loser since the past couple of days. Even today, it holds on fast to this place. It has breached the lower circuit twice since morning – once at Rs.80.10 and another at Rs.66.75. It also hit a six-year low at Rs.50.70.

The market is hugely disappointed with the company’s Q1FY16 performance. It posted a loss of Rs.158 crore v/s net profit of Rs.86 crore in previous Q1. Net sales too dropped 13% at Rs.854 crore. High raw material costs and huge interest outgo is what did the company in. Its raw material cost rose 35% while interest outgo burgeoned from Rs.115 crore to Rs.237 crore, more than doubled.

Rumours are floating around that the company is facing issues with its FCCBs. Though the company has denied having any problems about repayment and meeting the dues, the market seems spooked with the stock. The market is also obviously bothered by the other announcement – it is being excluded from equity derivatives and futures and options (F&O) segments, with effect from October 30.  

Along with Amtek Auto, all its group companies have lost – Amtek Auto, Castex Technologies, Metalyst Forgings and JMT Auto. All four group companies together have debt of nearly Rs. 25,800 crore.