ALSTOM India drops after weak Q4 outcome

ALSTOM India lost 2.52% to Rs 595 at 09:41 IST on BSE after net profit declined 61.9% to Rs 27.40 crore on 53.2% fall in total income to Rs 396.85 crore in Q4 March 2016 over Q4 March 2015.

The result was announced after market hours yesterday, 9 May 2016.

Meanwhile, the S&P BSE Sensex was down 33.11 points or 0.13% at 25,655.75

On BSE, so far 2,223 shares were traded in the counter as against average daily volume of 1,782 shares in the past one quarter.

The stock hit a high of Rs 600 and a low of Rs 580.40 so far during the day. The stock had hit a 52-week high of Rs 874 on 6 August 2015. The stock had hit a 52-week low of Rs 548 on 29 February 2016.

The mid-cap company has equity capital of Rs 67.23 crore. Face value per share is Rs 10.

ALSTOM India said that over the last 2-3 years the capital investments in the power sector, particularly in hydro and thermal have slowed down. In addition several projects in hydro and thermal sector are stalled due to external factors blocking company's financial resources and creating large work in progress. All these have led to lower sales and revenue generation impacting the company's financial performance over the last few quarters, ALSTOM India said. In the overall business interests of the company, it has been decided to right-size the scale of operations. This will lead to rationalizing the work force to match with the current backlog and operating levels, the company said. This rationalization is being carried on as part of the ongoing steps taken by the company to reduce the operating costs, improve the competitiveness and contain the operating losses. The cost of rationalization would be factored in the financials for the forthcoming quarters. The rationalization is not expected to disrupt or adversely affect the commercial production or operations of any unit or division of the company, it added.

The company's board of directors has not recommended any dividend for the year ended 31 March 2016.

ALSTOM India provides engineering, manufacturing, project management and supply of products and solutions for infrastructure sector.

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