You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Premier Explosives reports Q1 net loss of Rs 2.42 cr

Capital Market 

On a consolidated basis, Premier Explosives reported net loss of Rs 2.42 crore in Q1 June 2020 compared with net profit of Rs 0.68 crore in Q1 June 2019.

Consolidated net sales slumped 56.3% to Rs 23.08 crore in Q1 June 2020 over Q1 June 2019. The company reported pre-tax loss of Rs 3.42 crore in Q1 June 2020 as against pre-tax profit of Rs 1.13 crore in Q1 June 2019. The Q1 earnings were announced post market hours yesterday, 11 September 2020.

The company's current order book stands at Rs 482.60 crore, which would provides decent revenue visibility for next two years. The order book is lower compared with Rs 483.80 crore in March 2020.

The COVID-19 has impacted the group's operations in the first quarter of FY 2020-21, following the nationwide lockdown announced by the Government of India (GoI). The firm commenced operations in a phased manner across all manufacturing units, adhering to the prescribed safety measures. Currently, the company is operating at 30%-40% utilization levels. In supply chain, there has been no impact on procurement of raw material domestically. However, the firm is witnessing considerable delay in import of raw materials for defence products.

As on 30 June 2020, high inventory of work-in-progress has built-up due to delay in dispatches, awaiting inspection by defence authorities; collection of receivables has been getting prolonged. Premier Explosives availed moratorium in respect of term loan (both interest and installments) and cash credit (interest).

Premier Explosives is engaged in the business of high energy materials (commercial explosives and defense explosives).

Shares of Premier Explosives fell 1.32% to Rs 119.40 on Friday. The scrip grew 111.32% from its 52-week low of Rs 56.50 hit on 25 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 41.954 as on Friday, 11 September 2020. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was between its 50-day moving average (DMA) placed at 124 and its 200-day moving average (DMA) placed at 112.95.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, September 12 2020. 12:52 IST