GHCL dips 9% on disappointing Q2 results

GHCL dipped 9% to Rs 228 on the BSE after the company reported 41% year on year (YoY) decline in its standalone net profit at Rs 53.32 crore in September quarter (Q2FY18), due to higher raw material and fuel cost. The company engaged in commodity chemicals business had profit of Rs 90.28 crore in the same quarter last fiscal.

Revenue from operations (net of excise duty) during the quarter under review grew 8.4% at Rs 714 crore against Rs 659 crore in the corresponding quarter of previous fiscal. Total expenditure rose 10% to Rs 638 crore from Rs 580 crore.

The company’s home textiles segment recorded loss before interest and tax of Rs 6 crore during the quarter. It had posted profit before interest and tax of Rs 40 crore in previous year quarter.

The stock has fallen 13% in past two trading sessions from Rs 261 October 19, 2017. In October month, it outperformed the market, rallied 24% against 3.5% rise in the S&P BSE Sensex till Thursday.