Shankara Building Products, a building material retailer posted disappointing numbers for Q4FY19.
Its consolidated net revenue slipped 18.5% (YoY) to Rs.620 crore and net profit was down by a huge 93% at Rs.1.6 crore. Its total expenses rose 15% and combined with lower sales, hit the bottomline.
EBITDA for the quarter was down 70% at Rs.16 crore while margins slipped big time from 7.1% to 2.6%.
The only next trigger for the stock is the approval of sale of its 2-lakh-tonne processing facility to APL Apollo Tubes Ltd. for Rs 70 crore. The company has convened an EGM on 20th May to get approval for partial sale of assets including land, building and equipment of M/s Taurus Value Steel & Pipes Pvt. Ltd (a wholly owned subsidiary) of Shankara Building.
Its consolidated borrowings as at 31st Marc 2019 stood at Rs.193 crore and trade payables stood at Rs.381 crore.
The market had taken these numbers on its shin and the stock price dropped almost 6% to Rs.583 and was figuring among the top losers on the BSE. From there, it has bounced back into the green and it is now over 2% up at Rs.492.