Waterbase drowns in red
Waterbase is an aquaculture company, based in Andhra Paradesh. A part of the Karam Chand Thapar group, the stock is streaked a deep red today, going down as much as 18% during intra day to Rs.119.90 levels. It has recovered from there to Rs.130.70 but remains almost 11% down.
The company posted a decent set of numbers for Q2FY16. Its revenue rose 21% (YoY) at Rs.99 crore and EBITDA showed a healthy 15% jump at Rs.10 crore. Net profit for the quarter showed a good 48% jump at Rs.6 crore. The margin saw some pressure, down 30 bps to 9% (YoY) and this was mainly on account of a 21% rise in total costs, led by a 14% jump in raw material cost.
The market is not paying heed to the performance as the company has issued a cautious outlook for the coming two quarters. The company has said that the prices of its products have been down through H1 and had started improving only towards end of Q2, yet it expects H2 to be challenging. The company is meanwhile expanding its network into Gujarat, West Bengal and Tamil Nadu and it began exports to EU and USA during Q2.
The Thapar group owns 52.47% stake as at 30th Sept 2015 and there is no FII holding.