Mandhana Industries has breached lower circuit for straight two days

Mandhana Industries is going to carve out its retail business operations. The Company has already received the approval for its scheme of demerger of the retail business from the Hon'ble High Court of Bombay vide order dated March 29. It is in the process of demerging its current retail business into the resulting company, Mandhana Retail Ventures Limited. All current and future retail businesses of Mandhana Industries will henceforth be carried out in the resulting company.

After the subsequent approval to the scheme, the resulting company, Mandhana Retail Ventures Limited is in the process of signing a new contract with rBeing Human - The Salman Khan Foundation, the specifics of which are under negotiation with them.

On financial front, Mandhana Industries has reported 8.92 per cent de-growth in net profit of Rs 57.13 crore, and its revenue has been reported at Rs 1,646.6 crore in FY16. Its consolidated operating profit (EBITDA) has grown by 6.83 per cent at Rs 242.61 crore during FY16 along with operating profit margin reporting flat at 14.73 per cent.

The share price of Mandhana Industries has hit 20 per cent lower circuit and closed at Rs 178.05 on an intraday basis. The company consecutively for two days breached lower circuit on bourses.

Mandhana Industries is engaged in the manufacturing of textiles and garments. The company’s business includes designing, yarn dyeing, weaving, processing, printing, and garment manufacturing. It operates in two segments viz. Textiles and Garments.