Praj Industries Q2 Number Drop, Share Price Declines

Praj Industries’ second quarter numbers came in below estimates. Revenue came in 6.3 per cent lower than the street estimate of Rs 219.6 crores. Moreover, net profit was 66.6 per cent lower than the estimated figure of Rs 9.1 crores. Consolidated revenue for the quarter decreased 1.9 per cent year on year to Rs 206 crores.

Consolidated EBITDA declined by 14 per cent year on year to Rs 6 crores while EBITDA margins fell by 40 bps year on year to 3 per cent. This was primarily due to increase in employee benefit cost by 14 per cent on account of ESOP. Consolidated net profit sharply dropped by 38 per cent year on year to Rs 3.04 crores primarily due to increased in tax expenses by 511 per cent year on year. This is led by adoption of Ind AS.

Praj Industries share price is currently trading at Rs 81.35, down by more than 5 per cent in today’s trading session. The share price opened at Rs 82.20 from a previous closing of Rs 86.05. The intraday high of the share 82.20 and the intraday low is Rs 79.25. A total of 20,85,145 shares of the Company have been traded on the counter of National Stock Exchange for a total amount of Rs 1,685.21 lacs. The 52 week high of the share is Rs 105.30 made on 4th July 2016 and the 52 week low of Rs 70.20 26th February 2016. The Lower Price Band is 68.85 and the Upper Price Band is 103.25.

Praj was formed in the year 1983. The company went public in the year 1994 and is listed on the BSE and NSE of India. Praj received its first Venture Capital from ICICI Bank in 1987. Today it has investors like Venture Capitalist Vinod Khosla who has a 10 per cent stake and Marubeni Corporation. Praj Foundation was established in the year 2005 as the CSR wing which is managed by Piramal Chaudhari.