Rupa Company has a bad day today; the stock opened 18% lower at Rs.438 and went down to an intraday low at Rs.414, a decline of 19.72%, just a tad away from hitting the 20% LC of the day at Rs.412.50. It has recouped since then and is now trading at Rs.437 levels, down over 15%.
Two developments unnerved the market – the poor earnings for Q4FY22 and a very sudden reshuffling of the top management.
The market got jittery after the CEO, Dinesh Kumar Lodha and CFO, Ramesh Agarwal resigned after announcing the earnings. The company clarified that the CEO resigned on account of ‘personal reasons’ and will relieved of duty on 31st May. The CFO, Mr.Agarwal will continue to guide the company as a whole-time director.
On the earnings front, the company reported a 25% (YoY) drop in net profit at Rs.49 crore and this was on a very flat rise in revenue at Rs.455 crore. A 10% decline in volumes impacted the topline and the higher operating costs weighed down the bottomline.