Shares of Fiem Industries fell over 3 percent on June 14 reacting to a fire mishap that took place around noon on June 13 in one of the company’s units in Haryana. A fire accident took place in one building of Unit-7, situated at Plot No 1915, Phase -V, Rai Industrial Estate, in Sonipat, Haryana, the company said in an exchange filing.
At 9:29 am, shares of the automotive lighting manufacturer were trading at Rs 1778.75, down 2.4 percent on the BSE.
Fortunately, no humans were hurt and the fire was brought under control within a few hours with the assistance of fire tenders. However, there was some damage to buildings, machinery, stocks, and furniture, the company added.
Fiem Industries is currently evaluating the extent of the damage caused by the fire and has started the necessary procedures to make an insurance claim since the company's assets are adequately insured.
Catch up on all LIVE stock market updates here
To prevent any disruptions in the supply to their valued original equipment manufacturer (OEM) customers, the company is arranging the delivery of products from another building within the same unit, as well as from other units. Additionally, the company will take prompt and appropriate actions to ensure that the affected part of the unit resumes functioning as soon as possible, Fiem Industries added.
The financials
Fiem Industries is debt free as of March 2023. It is confident of outperforming the industries on revenue growth. The company’s order book as of June 2023 stood at Rs 950 crore.
Consolidated net sales fell 11 percent YoY to Rs 436.25 crore, whereas net profit rose 13 percent to Rs 38.03 crore.
The on-year decline in quarterly sales is due to a decline in production of key customers of FIEM Industries. FY23 revenues grew nearly 18 percent to Rs 1,830 crore. Meanwhile, margin expansion in mainly due to some price escalation received from the customers, analysts said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
