Minda Industries Shares Fall 4% On Weak Q1FY21 Result; Rights Issue Opens Aug 25

Shares in Minda Industries in intra-day trade on August 24, 2020 declined as much as 4.4% to day's low of Rs. 326.5 per share as against the previous close of Rs. 341.5. This is after the auto components firm reported weak set of earnings for the quarter ended June.

Minda Industries Fall 4% On Weak Q1FY21 Result; Rights Issue Opens Aug 25

The standalone net loss at the company stood at Rs 53.11 crore in comparison to Rs. 31.6 crore profit in the corresponding quarter a year ago. In the March ended quarter, the company reported a profit of Rs. 5.17 crore. Also, revenue at the firm from operations declined 73 per cent year on year to Rs.228.16 crore versus Rs. 836.1 in Q1FY20. For the quarter ended June, the company also logged an exceptional loss to the tune of Rs. 81.47 crore.

Also, its EBITDA (earnings before interst, tax, depreciation and amortisation) loss came in at Rs 71 crore, down from Rs 172 crore in Q1FY20. The EBITDA margin came in at (-)17.14 per cent, down from 11.96 per cent.

Rights issue of the company will open on August 25 and the last day for submitting application will be September 8, 2020. A rights issue is an opportunity for the existing shareholders of the firm to buy additional shares at a reduced price. RE or rights entitlement shall be credited to eligible investors by August 24 and trading will begin from August 25. The company will issue 10 million fully paid equity share of face value of Rs 2 each for amount aggregating to Rs 250 crore.

At 12:02 pm, the stock of Minda Industries quoted down by 2.96 per cent or Rs. 10.10 at Rs. 331.40 apiece on the BSE.

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