Eveready Industries stock hit the upper circuit of 10% in early trade today after Delhi High Court allowed the firm to go ahead with the sale of its property in Hyderabad. The micro cap stock rose 9.92% to Rs 59.30 compared to the previous close of Rs 53.95 on BSE. Share of Eveready Industries has gained 8.22% in two days.
However, the microcap stock has lost 69.34% during last one year and fallen 69.38% since the beginning of this year. The High Court had passed an ad-interim ex-parte order of injunction due to which the company had been restrained from selling, transferring, alienating, disposing, assigning, dealing, encumbering or creating third party rights on any of its assets, and carrying out any change in its capital structure, or any corporate or debt restructuring till the date of the next hearing in the matter.
"The Hon'ble High Court of Delhi, has been pleased to vacate the said ad-interim order of injunction to the extent that the Company has been allowed to go ahead with the sale of the property at Hyderabad in terms of the agreement for sale dated August 30, 2019," the firm said in a communication to bourses.
The country's largest dry-cell battery maker logged over 25 per cent fall in standalone net profit to Rs 18.38 crore for the quarter ended September 30, 2019 compared to Rs 24.66 crore in corresponding period of previous fiscal.
According to the company, the year-ago-period saw a windfall credit of approximately Rs 5 crore that was on account of reversals for wage provisions of its closed Chennai manufacturing unit. Since there has been no such windfall this quarter, profitability was lower.
Total income in Q2 stood at Rs 365 crore, down by 7 per cent, year-on-year.
Eveready Industries India is engaged in the business of marketing of fast moving consumer goods, such as dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. The company also distributes a range of electrical products.
By Aseem Thapliyal