Kitex Garments falls over 10% on disappointing Q4 numbers

The stock tanked 16% to Rs 422 the company reported 39% decline in profit at Rs 27 crore in Q4

Kitex Garments tanked 16% to Rs 422 on BSE in intra-day trade after the company reported disappointing set of number for the quarter ended March 2017 (Q4FY17).

The company’s Q4FY17 net profit was down 39% at Rs 27 crore, due to higher other expenses. The company engaged in garments and fabrics business had profit of Rs 45 crore in year ago quarter.

Net sales declined by 9% at Rs 157 crore against Rs 172 crore in the corresponding quarter of previous fiscal.

The board of directors of the company has approved the issue of bonus shares in the ratio of 2:5. The board also approved final dividend of Rs 0.75 per equity shares of face value of Re 1 each.

In the month of April, the stock had outperformed the market by gaining 17%, as compared with 1% rise in the S&P BSE Sensex.

At 12:00 pm; it was down 13.5% at Rs 433 against 0.22% decline in the benchmark index. A combined 489,596 shares changed hands on the counter on BSE and NSE so far.