Everonn Education plunges on turning into red

Everonn Education has plunged 11% to Rs 313 after reporting a consolidated net loss of Rs 3.78 crore for the second quarter ended September 2011, against a net profit of Rs 15.58 crore during the corresponding quarter of previous fiscal. Income from operations too, declined 26% to Rs 79.55 crore on year-on-year basis.

The rising interest cost and higher provision for depreciation have impacted the profit growth of the company engaged in education business during the quarter under review. In the June quarter, Q1, it earned a net profit of Rs 9.6 crore on revenues of Rs 98 crore.

The stock opened at Rs 342 and hit a low of Rs 281 on the National Stock Exchange. The trading volumes on the counter more than double, with a combined 1.99 million shares have changed hands till 1110 hours, against an average less 500,000 shares that were traded daily in past two weeks.