Shares of Sansera Engineering hit a new low of Rs 681.20 after they slipped 9 per cent on the BSE in Tuesday's intra-day trade after the company's consolidated net profit more-than-halved to Rs 23.9 crore in December quarter (Q3FY22). This was due to its weak operational performance. The auto component company had posted profit of Rs 50.6 crore in the year-ago quarter.
At 12:22 pm, the stock was at Rs 698.45, 6 per cent below its issue price of Rs 744 per share. It has corrected 23 per cent from its record high level of Rs 889.80 touched on November 17, 2021. The company had made a stock market debut on September 24, 2021. In comparison, the S&P BSE Sensex was up 0.18 per cent at 57,726 points.
In Q3FY22, the compan's total revenue declined 3 per cent to Rs 487 crore from Rs 501 crore in the corresponding quarter of the previous fiscal. Earnings before interest tax and depreciation and amortization (Ebitda) margin contracted 520 bps at 15.6 per cent, driven by a fall in gross profit, higher employee cost, partially offset by lower other expenses.
The company said gross margins declined 3.4 per cent primarily due to lag in price increase on domestic sales, decrease in other operating income and slight squeeze in margins on international revenues due to higher raw material prices.
The management said the situation is improving gradually, and we are observing sign of recovery across the segments led by pent up demand and relaxation of lockdown restrictions.
"A sequential improvement in M&HCV sales is expected to continue, driven by expected rise in e-commerce, agriculture, infrastructure, and mining economic activities. Electric vehicle (EV) market also continues to gain momentum and recent measures announced in the Budget {including battery swapping policy, creation of special mobility zones) will help enhance EV infrastructure and should propel the adoption of EVs in the country, the management said. The company won orders with significant potential from reputed customers both domestically and globally," it said.
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