Greaves Cotton declines after shutting down a plant

Greaves Cotton lost 0.76% to Rs 137.15 at 12:10 IST on BSE after the company said it has permanently closed the manufacturing operations at its construction equipment business plant at Gumidipoondi, Tamil Nadu.

The announcement was made after market hours on Monday, 15 September 2014.

Meanwhile, the S&P BSE Sensex was down 43.13 points or 0.16% at 26,773.43.

On BSE, so far 97,000 shares were traded in the counter as against average daily volume of 79,770 shares in the past one quarter.

The stock was volatile. The stock lost as much as 1.48% at the day's low of Rs 136.15 so far during the day. The stock rose as much as 1.59% at the day's high of Rs 140.40 so far during the day. The stock had hit a record high of Rs 145 on Monday, 15 September 2014. The stock had hit a 52-week low of Rs 54.70 on 18 September 2013.

The stock had outperformed the market over the past one month till 15 September 2014, surging 30.44% compared with the Sensex's 2.73% rise. The scrip had also outperformed the market in past one quarter, jumping 40.66% as against Sensex's 6.3% rise.

The mid-cap company has equity capital of Rs 48.84 crore. Face value per share is Rs 2.

Greaves Cotton said it has permanently closed the manufacturing operations at its construction equipment business plant at Gumidipoondi, Tamil Nadu due to non-viability and to avoid incurring further losses.

Greaves Cotton's net profit declined 9.5% to Rs 28.74 crore on 2.6% growth in net sales to Rs 421.75 crore in Q1 June 2014 over Q1 June 2013.

Greaves Cotton, a multi-product, multi-locational company is one of the leading engineering companies in India with core competencies in diesel/petrol engines, gensets and construction equipment.

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