Hanung Toys in the red

Hanung Toys is down in the red over the past couple of days and today too, it opened in the red and is now at Rs.18.25, down over 2%. Its 52-week low is at Rs.12.25.

The stock is down after the company slumped into the red post its Q3FY14 numbers wherein the company fell into a loss. It reported a net loss for the quarter at Rs.252 crore v/s net profit of Rs.33 crore in Q3FY13. Its net sales showed a major decline of 90% at Rs.43 crore. The company which operates in two segments – toys and textiles and both, since Q2FY14 have been reporting losses at EBIT levels. The company had ended Q2FY14 with a net loss of Rs.184 crore and the market is disappointed that the loss has only widened further in current Q3. Apart from the decline in topline, the gargantuan outgo on interest charges of Rs.57 crore for the quarter also pushed it into the red. For 9MFY14, interest outgo was at Rs.164 crore and this is almost as much as it had for entire FY13 at Rs.166 crore. With one more quarter to go, it means more bleeding on the bottomline unless sales spikes up.