The stock plummeted 8% and closed at 662. The company declared the results on 6th June 2020 and since then the stock has plummeted around 14% clearly the market was not expecting such weak results from the company. Coming to the results the Revenue of the company de grew by 15% Y-o-y in Q42020. The EBITDA grew just 1% mainly because of premiumization and high raw material prices. The PAT degrew by 5% Y-o-Y in Q4 2020 mainly because of the nation wide lockdown in March 2020 and markets are not sure of the situation going forward for Relaxo because of the uncertainities revolving around the crisis.
The share price shed over 10% at the end of the day after the company declared results on June 9. The company reported a net loss of 82 crores for Q42020 mainly on account of whole nationwide lockdown in March’20. The Revenue from operations declined 22.4% in Q4 2020 Y-o-y. The management has clearly described the current situation a prolonged situation and its impact:” The COVID-19 pandemic and the resultant lockdown declared by the government in March 2020 has impacted the entire entertainment industry and consequently the business activities of the Group are also adversely affected”.
“The advent of COVID-19 has left a
serious mark on our fourth quarter performance and will remain a cause of
concern in the subsequent months as well,” said Inox Group Director