Nilkamal tanks on disappointing Q2 numbers

Operating profit margins declined to 9.04%in Q2 FY13 from 11.88% in year ago quarter.

Nilkamal Limited has tanked 8% to  Rs 244 on reporting 37% year-on-year (yoy) drop in its standalone net profit at Rs 9.69 crore in September 2012 quarter (Q2) due to lower sales and higher raw material cost.

Net sales grew 9% at Rs 380 crore, lowest growth in last four quarter, on y-o-y basis. Operating profit margins declined by almost 300 bps to 9.04% from 11.88% during the recently concluded quarter.

The stock of plastic products maker had outperformed the market and rallied 22% in past two weeks on hopes of strong earnings as compared to 0.26% fall in benchmark index.

Today, the stock opened at Rs 260 and hit a low of Rs 241 on the BSE. A combined around 52,000 shares have changed hands on the counter so far on both the exchanges.