Kennametal India tumbled 4.26% to Rs 793 after the company reported a consolidated net loss of Rs 9.5 crore in the quarter ended 30 June 2020 as against a net profit of Rs 17.60 crore recorded in the quarter ended 30 June 2019.
Revenue from operations during the quarter slumped 58.8% year-on-year (YoY) to Rs 95.6 crore. On the segmental front, the revenue from machining solutions was at Rs 22.1 crore (down 64.7% YoY) and the revenue from hard metal and hard metal products was at Rs 73.5 crore (down 60.8% YoY).
Pre-tax loss in the June 2020 quarter stood at Rs 16.1 crore as compared to a pre-tax profit of Rs 25.40 crore in June 2019 quarter. The company wrote back taxes worth Rs 2 crore during the quarter.
Separately, the company's board took note that the current managing director, Bhagya Chandra Rao's term would come to an end on 16 September 2020. Consequently, it approved the appointment of Vijaykrishnan Venkatesan as managing director of the company with effect from 17 September 2020.
Kennametal India manufactures hard metal products, mining tools, special-purpose machines, metal castings, formings, jigs and fixtures. The company exports its products to Japan, Germany and the south-east Asian countries.
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