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Rico Auto gains after starting commercial production at Chennai plant

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Capital Market
Last Updated : Apr 28 2016 | 2:47 PM IST

Rico Auto Industries rose 3.73% to Rs 40.35 at 14:15 IST on BSE after the company commissioned and started commercial production at a manufacturing plant in Chennai for supply of high pressure die casting aluminium auto components to Renault-Nissan.

The announcement was made after market hours yesterday, 27 April 2016.

Meanwhile, the BSE Sensex was down 325.58 points, or 1.25% to 25,738.54

Higher than usual volumes were witnessed on the counter. On BSE, so far 3.67 lakh shares were traded in the counter as against average daily volume of 1.04 lakh shares in the past one quarter. The stock hit a high of Rs 41.10 and a low of Rs 39.70 so far during the day. The stock had hit a 52-week high of Rs 63.90 on 10 August 2015. The stock had hit a 52-week low of Rs 27.70 on 29 February 2016. The stock had outperformed the market over the past one month till 27 April 2016, rising 13.58% compared with Sensex's 2.87% gains. The scrip had, however, underperformed the market in past one quarter, falling 1.27% as against Sensex's 6.42% gains.

The company has an equity capital of Rs 13.53 crore. Face value per share is Re 1.

Rico Auto Industries said that the first phase of the plant has installed capacity of 1.5 lakh sets per annum for making engine parts including cylinder blocks. The ramp up is taking place and plant would start running on full capacity by Q3 December 2016. The company is also targeting other south based customers for domestic and export program to further enhance the business from Chennai plant.

Rico Auto Industries' consolidated net profit fell 94.5% to Rs 8.76 crore on 27.2% decline in net sales to Rs 253.73 crore in Q3 December 2015 over Q3 December 2014.

Rico Auto Industries supplies a wide range of high precision fully machined aluminum and ferrous components and assemblies to automotive original equipment manufacturers (OEMs) across the globe.

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First Published: Apr 28 2016 | 2:12 PM IST

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