Epack Durables Shares: Shares of Epack Durables Limited, a consumer durables sector company, saw a sharp fall of up to 10% on Thursday. This decline came after the company announced its September quarter results, in which the company’s losses have increased compared to the same quarter last year. Due to this, the sentiment of investors regarding this stock weakened.
Epack Durables said its net loss widened to Rs 8.5 crore in the September quarter, from Rs 6.1 crore in the same quarter a year ago. However, there has been a huge increase in the company’s income from other sources and it has increased from Rs 70 lakh last year to Rs 4.7 crore.
The company’s revenue also almost doubled in this quarter to Rs 377 crore, which was Rs 178 crore last year. However, the company’s expenses also increased during the September quarter, which weakened its performance.
The company’s gross margin declined 210 basis points to 14.6% during the September quarter, compared to 16.7% in the same quarter a year ago. The company said changes in inventory mix had an impact on margins.
Investment of $30 million in new manufacturing unit
Epack Durables said it will invest $30 million in the first phase of its new manufacturing plant in Sricity, Andhra Pradesh. In the second phase, the company will start production of washing machines and refrigerators here. The company’s management estimates that this expansion will generate additional revenues of approximately $1 billion over the next 5 years.
Establishment of new subsidiary company
The company’s board has also approved the formation of a wholly owned subsidiary. Its proposed name has been kept as ‘Epack Manufacturing Technologies Private Limited’.
huge fall in shares
At the time of writing, shares of Epack Durables were trading 8.3% lower at Rs 306.1 per share on Thursday. The company had listed in the stock market in January 2024, at that time its issue price was Rs 230 per share.
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