 "Escorts skids on disappointing Q2 results")
Escorts has slipped 7% to Rs 155 on NSE after reporting a net loss of Rs 7.85 crore for the second quarter ended September 2014 (Q2), mainly on account of one time exceptional expense and higher raw material cost.
The commercial vehicles manufacturer had posted net profit of Rs 43.63 crore for the same quarter last fiscal.
Operating profit almost halved to Rs 33.51 crore from Rs 64.45 crore during the recently concluded quarter.
"The company has absorbed the additional one time exceptional expense of Rs 31.4 crore on account of VRS that covered around 350 employees. As a consequence, the company recorded a loss of Rs 7.9 crore in the second quarter," Escorts said.
Net sales of the company for the quarter however, grew 5% to Rs 987 crore against Rs 940 crore in the corresponding quarter of previous fiscal.
The stock opened at Rs 159 and hit a low of Rs 151 on NSE. A combined 1.82 million shares changed hands till 1000 hours on NSE and BSE.
The commercial vehicles manufacturer had posted net profit of Rs 43.63 crore for the same quarter last fiscal.
Operating profit almost halved to Rs 33.51 crore from Rs 64.45 crore during the recently concluded quarter.
"The company has absorbed the additional one time exceptional expense of Rs 31.4 crore on account of VRS that covered around 350 employees. As a consequence, the company recorded a loss of Rs 7.9 crore in the second quarter," Escorts said.
Net sales of the company for the quarter however, grew 5% to Rs 987 crore against Rs 940 crore in the corresponding quarter of previous fiscal.
The stock opened at Rs 159 and hit a low of Rs 151 on NSE. A combined 1.82 million shares changed hands till 1000 hours on NSE and BSE.