D-Link India plunges on disappointing results
With sellers lining up at the counter following the company's disappointing show in the first quarter of 2017-18, shaes of D-Link India Limited have plunged sharply on Monday.
The stock declined to a low of Rs 85.05 on NSE and is currently down 9% at Rs 88.60.
The small-cap company reported net loss of Rs 10.59 crore for the quarter ended June 2017, as against net profit of Rs 0.51 crore it had posted in the corresponding quarter of the previous year. Net sales were down nearly 39% at Rs 92.17 crore in the first quarter of the current fiscal, from the year-ago quarter.
From a 52-week low of Rs 75.25 it touched in the third week of September 2016, D-Link rallied to Rs 154 by early April this year, before losing its way once again.
On the National Stock Exchange, the D-Link India counter has clocked a volume of over 8.6 lakh shares so far in the session today. On BSE, 1.43 lakh shares have changed hands so far in the session, as compared to average daily volume of just around 16,000 shares.
Adani Power down sharply
Adani Power (down 5.8% at Rs 30.75%) is also down sharply on heavy volumes. On the National Stock Exchange, the Adani Power counter has clocked a volume of nearly 12.7 million shares so far in the session. On BSE, about 1.2 million shares have changed hands so far at the counter.
The stock is down on reports that the Adani Group has lost almost all its investment in the debt-ridden Mundra thermal power plant, the country’s largest coal-fired project.
The ports-to-mining conglomerate will transfer the 4620-megawatt plant to its newly created subsidiary for an equity value of Rs 106 crore, a filing by the company to the stock exchanges shows. The power plant accounts for nearly half of Adani Power’s Rs 50,000 crore debt as of March, according to its filings.
A proposal to transfer the project to a step-down subsidiary, making Adani Power the holding company for the group’s power assets, is coming up for shareholder approval on September 20 through the National Company Law Tribunal.
The company is in trouble ever since the apex court ruled in April 2017, disallowing the company to increase tariff to compensate for the higher price of coal imported from Indonesia. Adani Power, which relied on imported coal for more than 60% of its fuel requirement, wrote off more than Rs 4300 crore it had accounted for as compensatory tariff in the last two years, according to the company's disclosures.
The Adani Group is reportedly looking to sell a majority stake in the new entity, Adani Power (Mundra) Ltd., to a strategic investor, the exchange filing said. It will be 99% owned by Adani Power and the rest by Adani Power (Jharkhand) Ltd. Thereafter, the project will be transferred on a slump-sale basis to the new company,
Since it is an internal transfer, the deal will not have any impact on the shareholders.
