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Vellora Impact shares hit 20% upper circuit after Q1 profit turnaround
The company posted net profit of ₹7.9 crore in the June quarter, after a ₹2.1 crore net loss a year earlier, as revenue surged to ₹141.9 crore.
Vellora Impact shares were locked in a 20% upper circuit on Thursday, 23 July, after the company reported a sharp turnaround in its June quarter results, with strong contribution from its agriculture business. LiveMint Markets said the rally came as buyers stepped in despite broader weak market conditions.
In the quarter, Vellora Impact swung to a net profit of ₹7.9 crore, compared with a net loss of ₹2.1 crore in the year-ago period. Revenue from operations jumped to ₹141.9 crore, far higher than the ₹1.2 crore reported in the preceding March quarter and the ₹1.2 crore in the year-ago quarter.
The company reported total income of ₹141.9 crore, since it recorded no other income during the quarter. LiveMint Markets reported that total expenses rose to ₹134.0 crore, primarily due to higher purchases of stock-in-trade at ₹135.7 crore, while profit before tax also came in at ₹7.9 crore.
With no tax expense disclosed for the quarter, profit after tax remained at ₹7.9 crore. LiveMint Markets also noted the stock had been volatile since hitting an all-time high in January, and the gain on the day pushed it to about 10% higher year to date, while it was largely flat over the past one year.