The shares of this Reliance Group subsidiary company associated with the ‘consumer food’ sector hit the 5 percent upper circuit in Wednesday’s trading session after the company’s net profit figures jumped around 315 percent QoQ.
With a market capitalization of Rs 438.52 crores, the stocks of Lotus Chocolate Company Limited, a subsidiary company under the Reliance Group, started their trading session on Wednesday hitting the 5 percent upper circuit at Rs 341.50, and are currently locked at the same share price.
Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended December 2023.
Sequentially, the company’s prime business indicators such as operating revenues and after-tax profits, showed positive movements on a consolidated basis.
The former increased from Rs 48 crores during Q2FY23-24 to Rs 52 crores during Q3FY3-24, and the latter, keeping the timeframe the same, transitioned from a loss of Rs 13 lakhs to a profit of Rs 28 lakhs representing an increase of approximately 315 percent.
Moreover, the metrics mentioned above, on a standalone basis, improved during the recent period with the operating revenues increasing from Rs 29 crores during Q2FY23-24 to Rs 38 crores during Q3FY23-24, and the net profit numbers, during the same horizon, reducing its losses from Rs 72 lakhs to Rs 51 lakhs.
Due to underperformance in the recent financial years, the company’s net profit margin went down from 6.90 percent during FY21-22 to -11.09 percent during FY22-23.
According to the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 72.07 percent stake followed by the Public (retail) investors holding a 27.91 percent stake in the company.
Lotus Chocolate Company Limited is engaged in the business of manufacturing chocolates and other cocoa products. The company’s consumer products have a wide range including chuckles, gobble, etc. The company also deals in industrial products such as lotus plain chocolate, lotus chocolate sauce, etc.
Written by Amit Madnani
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