Cox & Kings hits lower circuit

The company reported that it has defaulted payment towards maturity of its Unsecured Commercial Paper on June 26, 2019. For the Unsecured Commercial Paper aggregating to Rs. 200 crore, Rs. 50 crore was repaid and the balance amount of Rs. 150 crore has not been paid.

However, the company stated that the default was due to cash flow mis-match and by ratings downgrade. The company plans to meet its obligations through internal accruals and monetisation of assets.

On the financial front, for Q4FY19 Cox & Kings consolidated net revenue was at Rs. 452 crore as against Rs. 385 crore in Q4FY18, a growth of 18 per cent. EBITDA was up by 64 per cent at Rs. 149 crore as margins improved. Profit Before Tax and exceptional items was at Rs. 96 crore as against Rs. 47 crore YoY.

The company is also placed under the Additional Surveillance Measure (ASM) Long Term Framework Stage 1 by SEBI. Exchanges imposed trading restrictions on stocks listed under ASM.

Reacting to the default, the stock of Cox & Kings dipped and was stuck at Rs. 36.45 per share, down 10 per cent, which is its lower circuit limit for the day on Thursday.