Wendt (India), a Murugappa group company posted a disappointing set of earnings for Q3FY20. On a consolidated basis, its sales fell 23% (YoY) at Rs.33 crore and net profit came in 60% lower at a mere Rs.2.20 crore.
EBITDA came in 54% lower at Rs.4 crore and margins slipped from 20.9% to 12.4%.
The earnings were impacted due to sluggish demand from almost all major user industries like automobile, steel, engineering, cutting tools and refractories on the domestic front and also lower offtake from global customers due to continued industrial slow down.
The stock price has reacted negatively to this poor show; the stock, which had closed on Friday at Rs.2870, opened lower at Rs.2745, going down further to Rs.2655. It has recovered a bit and is currently quoted at Rs.2670 levels.