Technofab Engg slides after weak Q4 numbers

Technofab Engineering lost 4.75% to Rs 190.50 at 11:47 IST on BSE after net profit fell 63.4% to Rs 1.84 crore on 15.5% decline in net sales to Rs 120.72 crore in Q4 March 2017 over Q4 March 2016.

The result was announced on Saturday, 20 May 2017.

Meanwhile, the S&P BSE Sensex was up 159.34 points or 0.52% at 30,624.26. The S&P BSE Small-Cap index was almost unchanged at 15,227.08.

On the BSE, 8,555 shares were traded on the counter so far as against the average daily volumes of 4,432 shares in the past one quarter. The stock had hit a high of Rs 196 and a low of Rs 189 so far during the day.

The stock had hit a 52-week high of Rs 247.70 on 29 June 2016 and a 52-week low of Rs 141 on 23 May 2016. It had underperformed the market over the past one month till 19 May 2017, sliding 0.07% compared with the Sensex's 3.85% rise. The scrip had also underperformed the market over the past one quarter, gaining 3.07% as against the Sensex's 7.01% rise.

The small-cap company has equity capital of Rs 10.49 crore. Face value per share is Rs 10.

In its management commentary, the company said that its operational results for FY 2017 are below management expectations/previous projection on account of inability to achieve the planned/projected turnover, whilst having a good order book. As a result, despite margin improvements, the fixed costs have dragged the profit down.

Management is confident that the drop in turnover is a one-time aberration and the current financial year (FY 2018) should see decent growth relative to the turnover in FY 2016.

Technofab Engineering is an engineering and construction company, serving the power, industrial and infrastructure sectors, by executing comprehensive balance of plant (BOP) and auxiliary systems on a complete turnkey EPC (engineering, procurement and construction) basis.

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