Videocon Industries extends recent sell-off on weak Q4 results

Videocon Industries was locked at 5% lower circuit at Rs 44.95 at 14:30 IST on BSE after the company reported net loss of Rs 547.73 crore in Q4 March 2017 higher than net loss of Rs 189.59 crore in Q4 March 2016.

The result was announced after market hours on Friday, 26 May 2017.

The stock has slumped 55.25% in six sessions to its ruling price of Rs 44.95, from a close of Rs 100.45 on 19 May 2017.

Meanwhile, the S&P BSE Sensex was up 154.11 points or 0.54% at 31,195.51. The S&P BSE Small-Cap index was down 132.58 points or 0.88% at 14,953.68.

On the BSE, 30,687 shares were traded on the counter so far as against the average daily volumes of 33,951 shares in the past one quarter. The stock was locked at a low of Rs 44.95, so far during the day, which is a 52-week low for the stock.

The stock had hit a 52-week high of Rs 114.90 on 6 October 2016. The stock had underperformed the market over the past one month till 26 May 2017, dropping 54.19% compared with 2.97% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 54.19% as against Sensex's 7.39% gains.

The small-cap company has equity capital of Rs 334.46 crore. Face value per share is Rs 10.

Videocon Industries' total income dropped 31.9% to Rs 2071.28 crore in Q4 March 2017 over Q4 March 2016.

The recent sell-off in the stock has been triggered by media reports of escalating debt woes of the company. As per reports, Central Bank of India declared the company as a non-performing asset (NPA) in Q1 June 2017. Central Bank of India has one of the highest exposures to Videocon at Rs 2700 crore, reports added. Other banks are likely to soon follow suit in declaring the account as a bad loan or an NPA.

Dena Bank had recently announced that it had classified Videocon's loan amounting to Rs 520 crore as a NPA. This has resulted into some negative publicity of the company and, accordingly, impacted its stock price, the company had issued the clarification.

Videocon Industries operates in four segments: consumer electronics and home appliances, crude oil and natural gas, telecommunications and power.

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