GNFC shares plunge over 4% on weak Q2 results and unappealing share buyback

Shares of the commodity chemicals company fell over 4 per cent in intraday trade on Thursday (November 9) after the company posted weak September quarter result.

For Q2, the company's profitability went down by 24 per cent on-year to Rs 182 crore in the quarter ended September, according to the company's exchange filing.  

There was a dent also on the operational revenue as it logged a nearly 20 per cent fall on-year to Rs 2080 crore during the quarter. Margins at the company also received a blow and came in lower at 8.1 per cent in comparison to 11.9 per cent during the same period last year.

"On a Y-o-Y Q-2 basis the margins have come under pressure mainly due to erosion in net sales realisations
practically across chemical products portfolio. During the financial year, Dahej operations of TDI has been
stable which helped improve the kitty of contribution," explained the company's Managing Director Pankaj Joshi, said.

Last ar around 10:20 am, the stock traded 2 per cent lower at Rs 677.4.

Also, the company's share buyback announcement wherein the company proposed to buyback shares up to 84.78 lakh via the tender offer route failed to excite investors. The company, on the sidelines, of its quarterly result announcement approved share buyback at the rate of Rs 770 per share which is only 11.4% premium to Wednesday's closing