Engineers India dips on weak Q2 results

The stock tanked 11% to Rs 242 on reporting a sharp 47% yoy drop in net profit at Rs 59 crore in July-September quarter.

Engineers India has tanked nearly 11% to Rs 242 on NSE after reporting a sharp 47% year-on-year (yoy) drop in net profit at Rs 58.78 crore for the second quarter ended September 2014 (Q2), due to lower operational income. The state-owned company had profit of Rs 112 crore in year ago quarter.

Net sales for the quarter declined by 16% to Rs 391 crore against Rs 465 crore in the corresponding quarter of previous fiscal.

EBITDA or operating profit plunged to Rs 7.97 crore in July-September 2014 quarter from Rs 88.53 crore in the quarter last year.

The stock opened at Rs 257 and hit a low of Rs 239 on NSE. A combined 1.18 million shares changed hands on the counter on NSE and BSE till 1050 hours.