Share price of Patanjali Group firm Ruchi Soya hit 5% lower circuit in Thursday's session, a day after the company published its April-June quarter results. Ruchi Soya- one of the largest manufacturers of edible oil in India- reported a 13% decline in its net profit to Rs 12.25 crore for the first quarter ended June 30, as against Rs 14.01 crore reported in the year-ago period.
The company also announced resignation of Acharya Balkrishna from the position of managing director.
Following Q1 earnings, shares of Ruchi Soya opened with a loss of 2.76% today and later touched an intraday low of Rs 683.9, falling 4.99% on BSE against its earlier closing of Rs 719.85. Ruchi Soya stock has fallen after 2 days of consecutive gain.
Ruchi Soya share trades higher than 5, 100 and 200-day but lower than 20 and 50-day moving averages. Share price of Ruchi Soya had surged to a high of Rs 1,535 in June. However, the stock has fallen 14% in the last one month. Market capitalisation of the firm stood at Rs 20,707 crore as of today's session.
"Acharya Balkrishna has resigned from the office of Managing Director of the company with effect from August 18, 2020, due to his pre-occupation. The Board of Directors has accepted his resignation," the filing said.
"Ram Bharat, whole-time director of the company, has been designated as Managing Director of the company with effect from August 19, 2020, till December," Ruchi Soya added in its regulatory filing.
Company's revenue from operations fell 2.2% to Rs 3,043.08 crore in Q1 June 2020, from Rs 3112 crore in the same period last fiscal. The announcement of Q1 result was made after market hours yesterday on 19 August 2020.
Baba Ramdev-led Patanjali Ayurved had acquired the edible oil firm Ruchi Soya on 18 December 2019 through an insolvency process.