Vakrangee tanks 18% on weak Q1 results
The stock slipped 18% to Rs 51.50 on the BSE in intra-day trade after the company reported a sharp 92% fall in its consolidated net profit at Rs 131 million in June quarter.
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A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (Photo: Reuters)
Shares of Vakrangee tanked 18% to Rs 51.50 on the BSE in intra-day trade after the company reported a sharp 92% fall in its consolidated net profit at Rs 131 million in June quarter (Q1FY18). It had profit of Rs 1,680 million in the same quarter last fiscal.
The company’s total revenue declined 21% at Rs 10.28 billion against Rs 13.05 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin stood at 2.4% in Q1FY19 as compared to 20.3% in Q1FY18.
The Company's activities predominantly comprise providing various services through Vakrangee kendra.
The company which has 45,000 + Kendra’s has said its franchisee to incur capex plus working capital investment up to of Rs one million for silver Kendra and up to Rs 1.8-2.0 million for Gold kendra. Revenue sharing ratio to change hence resulting into impact of profitability for the company.
During the current financial year, FY2018-19 the entire focus is on upgradation of the entire kendras into Next-Gen Vakrangee kendra model. The financials for the current year including the revenue as well as profitability would be materially impacted as these outlets undergo refurbishment or get churned, it added.
The benefits of this Upgrading exercise will start bearing fruits from next year FY2019- 20 onwards and the company expects robust financials from next year onwards, Vakrangee said.
The hit a 52-week low of Rs 30.85 on June 7, 2018, plunged 94% from its record high of Rs 515 touched in earlier this year, on January 24, in intra-day trade.
At 11:44 am; Vakrangee was trading 14% lower at Rs 53.60 on the BSE, against 0.62% decline in the S&P BSE Sensex. A combined 20.94 million equity shares changed hands on the counter on the BSE and NSE so far.
The company’s total revenue declined 21% at Rs 10.28 billion against Rs 13.05 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin stood at 2.4% in Q1FY19 as compared to 20.3% in Q1FY18.
The Company's activities predominantly comprise providing various services through Vakrangee kendra.
The company which has 45,000 + Kendra’s has said its franchisee to incur capex plus working capital investment up to of Rs one million for silver Kendra and up to Rs 1.8-2.0 million for Gold kendra. Revenue sharing ratio to change hence resulting into impact of profitability for the company.
During the current financial year, FY2018-19 the entire focus is on upgradation of the entire kendras into Next-Gen Vakrangee kendra model. The financials for the current year including the revenue as well as profitability would be materially impacted as these outlets undergo refurbishment or get churned, it added.
The benefits of this Upgrading exercise will start bearing fruits from next year FY2019- 20 onwards and the company expects robust financials from next year onwards, Vakrangee said.
The hit a 52-week low of Rs 30.85 on June 7, 2018, plunged 94% from its record high of Rs 515 touched in earlier this year, on January 24, in intra-day trade.
At 11:44 am; Vakrangee was trading 14% lower at Rs 53.60 on the BSE, against 0.62% decline in the S&P BSE Sensex. A combined 20.94 million equity shares changed hands on the counter on the BSE and NSE so far.