Pokarna drops restructuring plan, stock at 52-week high

The stock of Pokarna hit a new high even as the company struggles to find any attractive restructuring solution for its apparel business. Due to this, the company's board of directors have eliminated the restructuring solution.

The board has reviewed the apparel business and has reclassified from it from discontinued operations to continuing operations. Non-current assets held for sale and discontinued operations, the assets and liabilities of apparel business have been restated in the consolidated financial statements as at FY19 and the corresponding previous periods.

Pokarna’ consolidated revenue for the March quarter surged nearly 57 per cent to Rs. 144.7 crore from Rs. 90.6 crore in the corresponding quarter of previous year. This was mainly on account of strong growth in quartz business where revenue doubled to Rs. 107.24 crore. Apparel business contributed nominal revenue of Rs. 1.74 crore for the quarter.

EBITDA for the quarter was at Rs. 49.9 crore as against Rs. 22.60 crore in March 2018 quarter. EBITDA margin for the quarter stood at 34.5 per cent. Net profit for the quarter registered sharp jump of ~114 per cent to Rs. 26.48 crore from Rs. 12.52 crore in Q4FY18.

In response to this development, the stock of Pokarna touched 52-week high of Rs. 199.05 apiece on Tuesday. At 14:41 hours, the stock was trading at Rs. 188.40, up by Rs. 11.30 or 6.4  per cent on BSE.