Diamond Power

Diamond Power Infra is engaged in manufacturing of power cables and transmission towers. The company’s financial performance has consistently been pretty poor and ditto for Q2FY17. Consolidated net sales dropped 32% (YoY) at Rs.343 crore. The total costs rose 5% and it was in the red right from the EBITDA level.

The company ended the quarter with a net loss of Rs.209 crore v/s net profit of Rs.9 crore in previous Q2. Debt currently stands at over Rs.2250 crore. The entire fortunes of this company hinges on the revival of the power sector. The company is facing serious cash flow issues which is causing a lot of financial stress. The company has provided for Rs.138 crore as penalties accumulated over the years on orders from PSUs and state utilities.

Under the SDR package, the company has received as offer from Chinese conglomerate Jiangsu Longzhe who will invest close to Rs 840 croreto acquire majority stake in the company. Initially, Jiangsu Longzhe would acquire 26% from lenders. Subsequently, it will raise stake to 51% through an open offer to public 

As at 30th Sept 2016, promoters hold 44.58% stake, FIIs have 12.32% and DIIs hold 0.03%, down from over % in previous fiscal.