Weak Q1FY18 results push down the scrip values of J K Tyre and Coal India

Against the background of weak Q1FY18 results, the shares of J K Tyre slipped by over 4% intraday on Wednesday. The company posted net loss for the quarter at Rs 117.2 crore as compared to net profit of Rs 100.4 crore in Q1FY17. This was due to 16% YoY increase in finance cost. 
 
The company’s consolidated revenue for the quarter was at Rs 1,931.8 crore, registering 1% YoY decrease, on account of a marginal decline of revenue from Mexico. The stock was trading lower by 3.75% at Rs 146 per share on the BSE at 1008 hours. It touched its intraday high and low at Rs 146.70 and Rs 140 per share and attracted total traded volume of 16,02,956 shares and value of Rs 1,314.03 lakhs on the NSE at 1010 hours.
 
Similarly, Coal India too witnessed a decline in its scrip price by over 1% intraday on Wednesday on account of a decrease in net profit of Q1FY18.  The PAT for the quarter was Rs 2,351 crore, showing a YoY decline of 23.3%. This was on account of rise in effective tax rate to 40% in the quarter as against 34% in the corresponding quarter last year.
 
Its EBITDA for the quarter fell by 2% YoY to Rs 3,522 crore with a corresponding margin contraction of 176 bps. The EBITDA margin for the quarter was at 17.1%. This margin contraction was led by adverse changes in inventories and 11% YoY rise contractual expenses added in margin contraction.
 
The stock was trading down by 1.42% at Rs 235 per share on the BSE at 1015 hours. It attracted total traded volume of 36,05,114 shares and value of Rs 8,499.06 lakhs on the NSE at 1017 hours.