ABSL-backed Butterfly Gandhimathi share price slumps 6% to touch 52-week low on weak Q3 results
- Butterfly Gandhimathi Appliances share price slumps over 6% to touch 52-week low following weak Q3 results. Butterfly Gandhimathi stock price falls 36.89% in the past year, underperforming its sector.
Butterfly Gandhimathi Appliances Limited share price slumped over 6% to touch 52-week low at ₹874.95 apiece on BSE following weak Q3 results. Butterfly Gandhimathi share price opened at ₹900.05 and touched an intraday high of ₹908. Butterfly Gandhimathi stock price fell 36.89% and underperformed its sector by 120.04% in the past year, as per trendlyne data.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Butterfly Gandhimathi share price has been under pressure for the last couple of weeks and has seen an extended selloff today with a price down 5%. Traders should refrain from bottom hunting as expected to remain weak. Any bounce should be used to exit longs; support is at ₹810 and resistance at ₹930, advised Bhosale.
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In a release, the company stated that its operating revenue for the quarter ended December was ₹238 crore, a 4% decrease from the previous year. According to the company, this is because the B2B segment—particularly corporate sales—has declined, leading to de-growth. Profit after taxes fell 118% year over year for the quarter that ended in December, according to the company's report.
Butterfly Gandhimathi Appliances saw an 89% decline in EBITDA, or earnings before interest, taxes, depreciation, and amortisation.
The material margin shrank by 430 basis points year over year to 34.3% as a result of increased absorption costs and Diwali promotions.
“During the quarter, Revenue from core categories grew along with market share gains vs the same period last year. Growth in core categories was driven by new product launches, with meaningful contribution from premium segments.
We continued our focus on channel development resulting in Retail and Regional Chain Stores growing for the third consecutive quarter, with sustainable growth in e-commerce sellouts. Promotions due to competitive intensity, increase in employee expenses and higher A&P spends led to subdued EBITDA margins," said Rangarajan Sriram, Managing Director, Butterfly Gandhimathi Appliances Ltd.
As on December 2023, Aditya Birla Sun Life (ABSL) Trustee Private Limited A/C Aditya Birla Sun Life Small Cap Fund holds 2.41% stake in Butterfly Gandhimathi Appliances.
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