MMTC frozen at lower circuit, again
MMTC continues to tumble. After being locked on the 5% lower circuit on Friday, the stock is once again locked on the lower circuit today also at Rs.47.25. Almost 72,000 pending buy orders remain on the counter.
The stock has been hitting the lower circuit for two days consistently due to the poor numbers it posted for Q1FY14. Despite a 69% jump in net sales at Rs.8823 crore, net profit declined over 50% to a meager Rs.6 crore. The main reason for this has been a surge in the total operating expenses, which have risen 39% at Rs.8826 crore. The company would have slipped into the red but for the extraordinary income of Rs.5.12 crore; a small amount albeit helping the company post a small profit.
The stock is also down on news that MMTC, which has been trading into agro products through the NSEL has now been suspended due to the ongoing issues at the exchange. The company had executed contracts on the NSEL and had receivables to the tune of Rs.202 crore as at 30th June 2013 of which it has realized Rs.187 crore and Rs.15 crore is outstanding. As on 12 August 2013, Rs.226 crore was receivable from NSEL.