InvestorQ : Why did the stock of Bombay Dyeing fall so sharply on 10 July?
Tisha Malhotra made post

Why did the stock of Bombay Dyeing fall so sharply on 10 July?

Answer
image
diksha shah answered.
3 months ago
Follow

Bombay Dyeing stock fell by 7.4% after the company's consolidated March quarter profit tumbled by 96% on a YOY basis to Rs.48.63 crore. This compares very unfavourably with a net profit of Rs.1257 crore in the previous year. Even on a full year basis, the net profits fell by 73% at Rs.329 crore. Overall revenues also fell in Mar-20 quarter by 89% to Rs.313 crore.

The company became operationally unprofitably in the March quarter as the sharp fall in sales meant that even the fixed costs could not be covered adequately. As a result, the EBITDA came in at (Rs.-24.81) crore for the March quarter and was only rescued by some non-recurring flows which helped close the quarter on a net profit.

2 Views