Sintex Inds tanks

Sintex Industries has maintained the position of the top loser on the BSE since the opening bell. The stock tanked over 7% intra day to Rs.93.70. Its 52-week low and high stands at Rs.80.15 and Rs.136.40 respectively.

The market is disappointed with the performance of the company for Q3FY16. Consolidated net profit grew by 11% (YoY) at Rs.180 crore on a 12% rise in net sales at Rs.2050 crore. This muted number was on account of poor offtake in affordable housing and EPC contracts. In terms of segment wise breakup, custom moulding revenue fell 1% (YoY)  while textiles showed a good 38% and building material segment showed a 21% growth in revenue.

The market is more perturbed with its estimates for FY16. The company has revised its sales and profit forecast downwards from 20% t0 15%. This, the company has blamed on falling commodity prices – petro based commodity prices have fallen on an average of 20% in Q3.

It ended 9MFY16 with a 16% rise in consolidated net profit at Rs.401 crore. The company expects to commission its 3.24 lakh spindles spinning project either before end of FY16 or early FY17. This unit, when on full capacity by end of nine months after commissioning is expected to generate a revenue of Rs.800-1000 crore in FY17 and operating margin at 19%.