 "Home appliances")
Hitachi Home and Life Solutions has dipped 10% to Rs 1,327 on the BSE in early morning trade after the company reported disappointing set of numbers with net loss of Rs 11 crore for the quarter ended September 30, 2015 (Q2) against profit of Rs 9 crore in the same quarter year ago.
The total operational income declined by 1.2% year on year (yoy) to Rs 251 crore.
The muted performance can be attributed to lower realizations which had impacted some players in the industry on the back of excess inventory build-up. Operating expenses as a percentage of sales grew by 7.4% on yoy basis. This was due to 387bp yoy increase in raw materials as a percentage of sales to 63.5% and 398bp yoy increase in other expenses as a percentage of sales.
Although Hitachi Home has strong parental support in terms of technological support and is expected to benefit from consolidation of its operations (to Gujarat), the valuations remain expensive, Angel Broking said in a client note.
At 09:30 am, the stock was down 8% at Rs 1,364 on the BSE. A combined 70,634 shares changed hands on the counter on the BSE and NSE.
The total operational income declined by 1.2% year on year (yoy) to Rs 251 crore.
The muted performance can be attributed to lower realizations which had impacted some players in the industry on the back of excess inventory build-up. Operating expenses as a percentage of sales grew by 7.4% on yoy basis. This was due to 387bp yoy increase in raw materials as a percentage of sales to 63.5% and 398bp yoy increase in other expenses as a percentage of sales.
Although Hitachi Home has strong parental support in terms of technological support and is expected to benefit from consolidation of its operations (to Gujarat), the valuations remain expensive, Angel Broking said in a client note.
At 09:30 am, the stock was down 8% at Rs 1,364 on the BSE. A combined 70,634 shares changed hands on the counter on the BSE and NSE.
