Shares of Coffee Day Enterprises Ltd. locked in 5% lower circuit on Thursday, as the coffee-chain operator announced that it requires more time to announce its audited financial results for the quarter ended June 30 and half year ended September 30 of current fiscal 2019-20.
This decision has come amid scrutiny of the company's books and the statements made by late VG Siddhartha in his letter preceding his suicide.
Shares of Coffee Day Enterprises Ltd. opened with a loss of 4.97% today and touched an intraday low of Rs 41.15 on the BSE, following the announcement. A total of lakh and 17 lakh shares changed hands on BSE and NSE counters, respectively.
The stock trades higher than 5 and 20-day moving averages but lower than 50, 100 and 200-day moving averages.
With a trend reversal, the stock has fallen after 10 days of consecutive gain. Market depth data on the BSE suggests 79% selling against 21% buying on the current stock value.
Although the shares have fallen 84% year-to-date, the share value has risen over 8% in one week and 11% in one month, respectively.
"Due to the ongoing probe in the books of accounts of the company and its subsidiaries there will be delay in submission of unaudited financial results for the 1st quarter ended June 30, 2019, and 2nd quarter, half-year ended September 30, 2019, within the prescribed statutory timelines," the statement read in company's filing, submitted on the bourses post market hours yesterday.
The company's board of directors said it had appointed Ashok Kumar Malhotra to investigate into the letters which former chairman late V.G. Siddhartha had written prior to his demise.
In another development, Sanjay Nayar, Director of the company, resigned from the Board of Coffee Day Enterprises (CDEL) on November 11, 2019. The company board has accepted his resignation in the meeting held on November 13, 20 19, the exchange filing said.
Coffee Day on Wednesday released highlights of its earnings for the June quarter. The coffee chain operator reported a multi-fold jump in its net profit booked at Rs 1,509 crore in April-June quarter this year, which included Rs 1,740 crore as one-time gain from sale proceeds of equity stake held in Mindtree.
On the other hand, the CDEL's subsidiary and flagship coffee retailing arm, Coffee Day Global Limited reported a net loss for the Q1FY20 at Rs 61 crores, with retail net revenue declining 1% yearly to Rs 361 crores this quarter.