Stock Crash: Epack Durables shares tank 10% after Q2 loss; Higher expenses weigh

Shares of Epack Durables Ltd. fell over 10% on Thursday, November 6, in response to its September quarter results, where the company's losses widened for the quarter from last year.

The company's net loss for the quarter widened to ₹8.5 crore from a loss of 6.1 crore it reported during the same quarter last year. This is despite a significant jump in other income to ₹4.7 crore from ₹70 lakh last year.

Revenue for the quarter increased to ₹377 crore from ₹178 crore last year. However, the revenue growth during the quarter was offset by higher total expenses.

Gross margin for the quarter narrowed by 210 basis points from the same quarter last year to 14.6% from 16.7%. Change in the inventory mix impacted the company's gross margins during the quarter.

The company mentioned that it will be investing $30 million in the first phase of its new manufacturing facility at Sricity in Andhra Pradesh. The second phase will see the manufacturing of washing machine and refrigerator. The management expects additional revenue of $1 billion over the next five years.

Epack Durables has also approved the incorporation of a wholly-owned subsidiary with the proposed name Epack Manufacturing Technologies Pvt. Ltd. or other such name as approved by the ministry of corporate affairs.

Shares of Epack Durables are trading 8.3% lower on Thursday at ₹306.1. The stock had listed in January 2024, having an issue price of ₹230 per share.