A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (Photo: Kamlesh Pednekar)
JBF Industries was quoting close to its four year low at Rs 104, down 9%, falling 27% from Rs 143 in past two trading days on the BSE. The stock is trading at its lowest level since May 27, 2014.
Since February 8, 2018, JBF Industries tanked 44% from Rs 185 after reported a weak set of numbers for the quarter ended December 2017 (Q3FY18). On comparison, the S&P BSE Sensex was down 4% during the same period.
The company engaged in the business of producing polyester based products had posted net loss of Rs 163 million Q3FY18 against a net profit of Rs 35 million in previous year quarter.
For the first nine months (April-December) of the current financial year 2017-18 (FY18), it reported net loss of Rs 437 million as compared to net profit Rs 245 million during the same period of FY17.
While announcing Q3 results JBF Industries said that, the Greenfield PTA project at Mangalore being executed through Company's step down subsidiary JBF Petrochemicals, continues to perform routine checks and remove deficiencies observed during initial operations and recommissioning of the plant delayed due to financial constraint. Operations at JBF RAK LLC, a step down subsidiary remained suspended.
The recent policy changes and adverse market condition has contributed cash flows constraint, therefore severely affected and delays in servicing some of its debt obligation with the lenders. In turn this has led to a formation of a Joint Lending Forum (JLF) by the lenders as per applicable guidelines of the Reserve Bank of India (RBl). JLF is in the process of taking corrective action plan and restructuring the debts of the Company, JBF Industries said in a note.
At 01:59 pm; the stock was trading 5% lower at Rs 109 on the BSE, as compared to 0.18% rise in the Sensex. A combined 838,981 shares changed hands on the counter on the BSE and NSE so far.