Sintex Industries shares today plunged seven per cent even as the plastic and textiles firm reported an 11 per cent rise in net profit during the December quarter.
The company today reported an increase of 11.14 per cent in consolidated net profit to Rs 180.09 crore for the third quarter ended December 31, 2015, on account of increase in sales driven by CSR spending and clean India initiatives.
On the BSE, the stock opened at Rs 97, then slumped 7.32 per cent to touch an intra-day low of Rs 93.60. In the end, the scrip was quoted at Rs 94.05, down 6.88 per cent.
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On NSE, the stock opened at Rs 96.50 and closed at Rs 93.50, down 7.14 per cent. During the day, it touched an intra-day low of Rs 93.10.
According to market experts, the slump in the counter despite decent earnings was largely because of lower guidance. Moreover, the weakness in the broader market also added to the fall in the stock.
The 30-share benchmark index today settled at 24,825.04, down 109.29 points.
Sintex Industries' consolidated net sales during the quarter under review rose 11.99 per cent to Rs 2,044.97 crore as against Rs 1,826.02 crore in the same period last fiscal.
"Our key business, prefabricated building systems and domestic custom molding segment, maintained higher momentum. Prefabs clocked higher sales, driven by CSR spending and clean India initiatives. I believe the momentum is set to continue in future," Sintex Group MD Amit Patel said.
