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NCL Inds terminates agreement with Chinese firm

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Capital Market
Last Updated : Sep 26 2020 | 12:31 PM IST

The cement maker on Friday (25 September) said it has terminated the joint venture agreement with China's Qingdao Xinguangzheng Steel Structure Company.

Earlier on 23 August 2019, NCL Industries signed an agreement to establish a joint venture company with Qingdao Xinguangzheng Steel Structure Company, China for manufacturing pre-engineered steel structures in India.

However, since the current state of bilateral relations between the two countries is not conducive to further progress in the matter, the joint venture agreement has been terminated, the company said. The announcement was made after market hours yesterday, 25 September 2020.

NCL Industries derives over 80% of its revenues from the cement business operating mainly in South India with an annual installed capacity of 2.70 million tons. The rest of the sales come from segments like cement bonded particle board, ready mix concrete and hydro power.

Its standalone net profit jumped 10.1% to Rs 31.95 crore on a 8.9% decline in net sales to Rs 260.91 crore in Q1 June 2020 over Q1 June 2019.

Shares of NCL Industries jumped 6.51% to Rs 107.10 on Friday, 25 September 2020. The scrip has zoomed 121.96% from its 52-week low of Rs 48.25 hit on 23 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 55.214 on Friday. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

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The stock was trading above its 50-day moving average (DMA) placed at 94.79 and its 200-day moving average (DMA) placed at 80.32.

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First Published: Sep 26 2020 | 11:54 AM IST

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