Shakti Pumps tanks 20% on weak Q2 results

The company reported a sharp 44% year on year decline in net profit at Rs 3.35 crore for the quarter ended September.

Shakti Pumps (India) has locked in lower circuit of 20% at Rs 201 on National Stock Exchange (NSE) after reporting a sharp 44% year on year decline in net profit at Rs 3.35 crore for the second quarter ended September 2014 (Q2), due to lower sales.  The pumps and motors manufacturer had a profit of Rs 6.03 crore in the same quarter last fiscal.

Net sales of the company for the quarter declined 27% to Rs 55.71 crore in July-September quarter against Rs 76.66 crore in the corresponding quarter of previous year.

Meanwhile, the company said its board has allotted 1.5 million 15% compulsory convertible preference shares (CCPS) at a nominal value of Rs 100 each at a premium of Rs 200 each aggregating to Rs 45 crore and convertible into 1.64 million equity shares of Rs 10 each at a premium of Rs 265 each of the company at a conversion ratio of 1:1.0909 to AFHoldings, a Company incorporated under the laws of Mauritius.

At 1052 hours, a combined 105,119 shares changed hands and there are pending sell orders for 257,548 shares on NSE and BSE.