Shanthi Gears gallops on stellar Q1 results

Shanthi Gears jumped 7.56% to Rs 129.40 at 15:15 IST on BSE after net profit galloped 254.34% to Rs 4.89 crore on 11.39% rise in total income from operations to Rs 46.42 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 25 July 2016.

Meanwhile, the S&P BSE Senses was up 269.37 points or 0.97% at 28,072.61.

High volumes were witnessed on the counter. On BSE, so far 2.64 lakh shares were traded in the counter as against average daily volume of 22,200 shares in the past one quarter. The stock hit a high of Rs 138.70 and a low of Rs 121 so far during the day. The stock had underperformed the market over the past one month till 22 July 2016, gaining 3.26% compared with Sensex's 3.88% rise. The scrip had, however, outperformed the market in past one quarter, gaining 26.17% as against Sensex's 7.61% rise.

The mid-cap company has equity capital of Rs 8.17 crore. Face value per share is Re 1.

Shanthi Gears said that the company focused on enhancing service levels, growing profitable segments, improving operational efficiencies and specific cost reduction initiatives which resulted in higher profitability.

The company's current order book stands at Rs 88 crore. The company has plans to invest Rs 25 crore in the year ending 31 March 2017 (FY 2017) to build capacity and capability to service customers.

Shanthi Gears manufactures a wide range of power transmission products which includes gears, gear boxes, geared motors and gear assemblies both standard and custom-made. Shanthi Gears is a subsidiary of Tube Investments of India.

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