Monte Carlo Fashions dips on weak June quarter results

The stock dipped 9% to Rs 510 after reported a sharp 82% YoY decline in net profit at Rs 1.48 crore in June quarter.

Shares of Monte Carlo Fashions have dipped by 9% to Rs 510 on the BSE after the company reported a sharp 82% year-on-year (YoY) decline in net profit at Rs 1.48 crore for the quarter ended June 30, 2015 (Q1), on account of lower sales and higher promotion expenses. The apparel manufacturer had posted a profit of Rs 8.44 crore in the same quarter last year.

Total income from operations declined by 5.9% YoY at Rs 68.87 crore, while total expenditure increased 7% at Rs 66.29 crore over the previous year's corresponding quarter.

Advertisement expenses in the quarter under review rose by 75% to Rs 8.02 crore against Rs 4.59 crore in the corresponding quarter of previous year.

The stock hit a low of Rs 503, its lowest level since April 6, 2015, on the BSE in early morning trades. A combined 172,018 shares changed hands on the counter on the BSE and NSE till 12:30 PM.

Monte Carlo had raised Rs 350 crore through initial public offer (IPO) by issuing shares at a price of Rs 645 per share.

The stock hit a high of Rs 632 on listing day on December 19 last year on the BSE and has been continuously trading below its IPO price despite a good response to its initial offer.