Shares of AGI Greenpac slumped 17 percent in early trade on July 26 but recovered nearly 10 percent in sync with the market rally. The decline in share price could be attributed to a decline in the company's net profit for the April-June period and rush among investors to book partial profits.
The stock had surged over 10 percent in the four sessions before its declared its quarterly earnings, which gave investors more leeway to take some profits home. Regardless of the slump in the stock in today's session, it is still up over 12 percent over the last month.
At 10.32am, shares of AGI Greenpac were trading 7.44 percent lower at Rs 641.15 on the NSE. The profit-booking also triggered a spike in volumes as 7 lakh shares changed hands on the exchanges, significantly higher than the one-month daily traded average of 2 lakh shares.
AGI Greenpac reported a 3.5 percent decline in its net profit for the first quarter of FY24 at Rs 63.5 crore, down from Rs 65.8 crore clocked in the same period last fiscal. The decline in net profit was due to higher income tax and deferred tax balances.
Follow our live blog for all the market action
On the other hand, revenue grew 7 percent on-year to Rs 558 crore from Rs 522 crore in the base quarter. The topline growth came in despite a scheduled furnace shutdown for relining. Moreover, operating profit margins or EBITDA margins also improved significantly to 25 percent from 17 percent in the year ago period.
On an year-on-year basis, the company’s sales and profitability improved owing to increased market demand, a more favourable product mix, and focus on high value-added products. "Additionally, substantial investments in digitalisation and automation have further optimised the operations,
significantly improving efficiency," the company stated in an exchange filing.
"We optimised our operations by strategically focusing more on high value-added products, which has proven instrumental in boosting our bottom line, and enhancing profitability," said Sandip Somany, Chairman and Managing Director of AGI Greenpac.
Disclaimer: The views and investment tips expressed by investment 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!
