Rain Industries up 17%

about 4 months ago
No Image

Rain Industries is among the top three gainers on the BSE post its great report on earnings for Q1CY20. The stock rose to an intraday high at Rs.81.20, going up almost 17%. Its 20% UC for the day is at Rs.83.45.

The company posted a 55% (YoY) jump in net profit at Rs.106 crore though net sales declined over 9% at Rs.2898 crore.

EBITDA was up 24% at Rs.460 crore. This was mainly on account of increased margins resulting from working through of high-cost raw material compared to Q1 CY19 and appreciation of USD against Indian Rupee.

Finance costs was Rs.1.20 billion during Q1 CY20, as compared to finance costs of Rs.1.13 billion during Q1 CY19. Increase in cost was on account of implementation of new lease standard and increase in working capital borrowings.

On Covid impact, the company said that it started operating its plants in India, in a phased manner, from first week of April 2020. Meanwhile, the Group’s plants in Europe and North America continued to operate, without any break during the current quarter. However, there were certain disruptions in supply chain, causing delays in the completion of expansion projects.

The Group has evaluated the impact of this pandemic on its business operations, liquidity and financial position, and based on management's review of current indicators and economic conditions, there is no material impact on its financial results as at March 31, 2020, and carrying value of its assets except certain inventory-related write-downs amounting to Rs.90 crore.

Popular Comments

No comment posted for this article.