Ludlow Jute slips after results

The stock price of Ludlow Jute is seeing a lot of profit booking, with the price slipping down to Rs.95 levels, a decline of over 6.5%.

Ludlow Jute happens to be the only jute mill in India built by the Americans. The mill was purchased by S.S Kanoria group from the Americans in 1977. They now hold 67.20% equity of the company. Its production capacity stands at 60,000 mtpa. It is stated to be one of the most modern and mechanized jute mills of India.

Total income for the quarter dropped 16% (YoY) at Rs.88 crore but a drop in total expenses from Rs.103 crore to Rs.87 crore and drop in interest outgo from Rs.96 lakh to Rs.41 lakh helped shore up the bottomline. Tax outgo almost halved from Rs.71 lakh to Rs.31 lakh. Thanks to all these, the company ended the quarter with a net profit at Rs.82 lakh, up from Rs.60 lakh.

The company ended the fiscal with a net profit at Rs.7 crore v/s Rs.6 crore in FY16. Equity is at Rs.10.80 crore and EPS for the year is at Rs.6.84 (FV of Rs.10). Reserve is aRs.33 crore.